CEO attributes, investment decisions and firm performance: new insights from upper echelons theory
CEO attributes, investment decisions and firm performance: new insights from upper echelons theory
The study examines the role of a CEO in enhancing a firm's performance through the mediating effect of investment decisions in the emerging economy of Pakistan. Distinctly, fixed-effects panel regression method is employed to examine the said nexus of nonfinancial firms listed at the Pakistan Stock Exchange. It is empirically unearthed that CEO attributes, namely, age, tenure, ownership, financial education, and career experience, are positively related to firm performance in general and capital investment decisions in particular. Second, capital investment decisions partially and significantly mediate the nexus between CEO attributes and firm performance with few exceptions that confirm the theoretical implications of upper echelons theory in an emerging economy context.
CEO attributes, Investment decision, Firm performance, Pakistan, Upper echelons theory
Ali, Rizwan
e9419873-e278-4105-a7fa-989f2647ce2f
Rehman, Ramiz ur
86dc877b-d0e0-487d-afb5-4eccfd56280a
Suleman, Sana
1d5b52cd-3994-48eb-962d-0ec1cb0fc77d
Ntim, Collins
1f344edc-8005-4e96-8972-d56c4dade46b
18 June 2021
Ali, Rizwan
e9419873-e278-4105-a7fa-989f2647ce2f
Rehman, Ramiz ur
86dc877b-d0e0-487d-afb5-4eccfd56280a
Suleman, Sana
1d5b52cd-3994-48eb-962d-0ec1cb0fc77d
Ntim, Collins
1f344edc-8005-4e96-8972-d56c4dade46b
Ali, Rizwan, Rehman, Ramiz ur, Suleman, Sana and Ntim, Collins
(2021)
CEO attributes, investment decisions and firm performance: new insights from upper echelons theory.
Managerial and Decision Economics.
(doi:10.1002/mde.3389).
Abstract
The study examines the role of a CEO in enhancing a firm's performance through the mediating effect of investment decisions in the emerging economy of Pakistan. Distinctly, fixed-effects panel regression method is employed to examine the said nexus of nonfinancial firms listed at the Pakistan Stock Exchange. It is empirically unearthed that CEO attributes, namely, age, tenure, ownership, financial education, and career experience, are positively related to firm performance in general and capital investment decisions in particular. Second, capital investment decisions partially and significantly mediate the nexus between CEO attributes and firm performance with few exceptions that confirm the theoretical implications of upper echelons theory in an emerging economy context.
Text
Accepted_30_May_2021_Manuscript_MDE
- Accepted Manuscript
More information
Accepted/In Press date: 31 May 2021
e-pub ahead of print date: 18 June 2021
Published date: 18 June 2021
Additional Information:
Publisher Copyright:
© 2021 John Wiley & Sons, Ltd.
Keywords:
CEO attributes, Investment decision, Firm performance, Pakistan, Upper echelons theory
Identifiers
Local EPrints ID: 449973
URI: http://eprints.soton.ac.uk/id/eprint/449973
ISSN: 0143-6570
PURE UUID: 07cca432-0d93-4181-a51b-422fe7834019
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Date deposited: 01 Jul 2021 16:30
Last modified: 17 Mar 2024 06:38
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Contributors
Author:
Rizwan Ali
Author:
Ramiz ur Rehman
Author:
Sana Suleman
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