Do Chief Executive Officer’s Attributes Impact on the Performance of Nigerian Firms?

Abstract

This study investigated the effect of Chief Executive Officer’s (CEO) attributes on the performance of manufacturing firms listed on the Nigeria Stock Exchange (NSE). In line with the ideals of upper echelon theory that firms are reflective of the cognitive behaviours of the CEO, we examined such attributes as CEO education, experience and gender on the performance and value of manufacturing firms. Secondary data were collected from the firms’ annual reports from 2013 to 2021, which was made suitable by the adoption of ex post facto research design. Thirty-six firms were purposely selected for the study wherein the data were analysed with the descriptive statistics, correlation and panel regression analysis. The results of the study indicate that CEO characteristics jointly have a significant effect on firm performance and firm value which were measured by Return on Equity (ROEQ) and Tobin’s Q (TOBNQ) respectively, of the manufacturing firms at 1% significant levels. The study therefore, recommends that CEO characteristics should not be independently sought for, but jointly as complementary components in individuals being considered for the CEO position. Additionally, appointing a female CEO should not be a fulfilling task, but a woman could be made the CEO if she possesses other complementary attributes, required for driving the firm towards greater performance and value, as would do by a male counterpart.