INTERNATIONAL JOURNAL OF ACCOUNTING, FINANCE AND SOCIAL TAXATION (IJAFST)
Effect of Individual CEO’s Characteristics on Firm’s Performance: Evidence from China
E-ISSN: 2316-422X
P-ISSN: 3982-0997
DOI: https://iigdpublishers.com/article/1641
This paper investigates the effect of individual chief executive officers‟ (CEO‟s) characteristics on corporate performance. CEO's across 50 Chinese firms over time were selected and it was discovered that CEO's specific factors play a significant role in their firm's performance. CEO's demographic characteristics include their legal background, dual position (that is, as both CEO and chairman of the same firm), shareholding ratio, gender, and tenure. The findings show that CEO's with a legal background have a positive influence on return on assets. Robustness tests support the validity of the main results. Our findings are consistent with the human capital theory and provide support for human-capital explanations in which CEO's legal expertise enhances their performance and corporate governance.
Philip Law & Wanggao Ningnan
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