Chief Executive Officer (CEO) Characteristics and Firm Value: Evidence from Malaysia

Mohd Waliuddin, Mohd Razali and Amirah Amani, Ulul Azmi and Josephine, Yau Tan Hwang and Janifer, Lunyai (2022) Chief Executive Officer (CEO) Characteristics and Firm Value: Evidence from Malaysia. International Journal of Academic Research in Business and Social Sciences, 12 (9). pp. 1537-1552. ISSN 2222-6990

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Abstract

Nowadays, the capabilities and competency of top managers such as CEOs are extremely crucial for each firm in order to emerge the business into the market. It is the determinants to a success or failure of a particular firm. The main purpose of this study is to examine the effects of CEO characteristics on firm value. The samples are annual reports from non-financial firms listed on the Bursa Malaysia during the period of 2013 to 2015. CEO characteristics of gender, age, education, ownership and network were developed based on the upper-echelon (UP), agency and resource dependence theories. The results imply that these CEO gender and networks are negatively significant to Malaysia firms and play an important role in determining firm value. The involvement of women is still rare in listed companies harm firm performance. When a CEO has a wider network, they tend to lost focus because of having too much commitment which resulting to decrease the firm value. In addition, the firm characteristics consisting firm age, firm size and firm leverage also found significant to firm value. This study would contribute to assist practitioners and policy maker about the various impacts of CEO characteristics to firm value. For future research, this study emphasizes other measurements CEO characteristics that could affect firm value.

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