IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 10 NO. 8 2024
DOI: 10.56201/ijebm.v10.no8Sept.2024.pg244.257

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CEO Demographics and Financial Performance of Firms in Nigeria

OKAFOR GODSON. I; OFOR. N. T. (PhD) & ANICHEBE A. S. (PhD)

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Abstract

This study empirically investigated the relationship between CEO demographics and financial performance of listed consumer goods firms in Nigeria. In order to determine the relationship between CEO demographics and firms’ financial performance, CEO demographics were proxy using CEO nationality and CEO tenure while firm financial performance on the other hand was measured using return on sales (ROS). Two hypotheses were formulated to guide the investigation and the statistical test of parameter estimates was conducted using panel least squares regression model operated with E-Views.12. Ex Post Facto design was adopted and data for the study were obtained from the Nigerian Exchange Group Factbook and published annual financial reports of listed consumer goods firms on Nigerian Exchange Group (NGX) spanning from 2015-2023. The findings of the study indicate that CEO nationality and CEO tenure have positive and significant influence on firm financial performance (ROS) at 1% significant level. Based on this, the study concludes that CEO demographics ensure corporate financial performance in Nigeria. The study therefore suggests above all that shareholder should consider appointing foreign CEO to their organizations, who have empirically proved to have less flair for fraudulent financial reporting and assets mismanagement, because of their orientations. Also, there is a need for increasing the tenure of executives as it is capable of improving financial performance and on the other hand reduce agency issues

keywords:

CEO Demographics; CEO Nationality; CEO Tenure; Return on Sales

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