CEO Attributes in the Context of Financial Distress Likelihood
DOI:
https://doi.org/10.31150/ajebm.v4i7.550Keywords:
CEO Attributes, Financial Distress Likelihood, CEO Gender, Logistic RegressionAbstract
The empirical literature highlights the importance of CEO attributes in the paradigm of firm’s financial distress likelihood. The position of the CEO has been given considerable attention in the global competitive corporate environment. In view of this uprising importance of CEO position, we investigate the case of 59 listed manufacturing firms in Nigeria to unravel the effect of CEO attributes: CEO gender and CEO nationality on financial distress likelihood. We employ Logistic regression analyses technique for analysing the data of the sampled firms collated for the period between 2010 and 2019. Based on the result obtained from the logistic regression analyses of manufacturing firms in Nigeria for the period under investigation we find that CEO gender diversity has a significant negative effect on financial distress likelihood finding consistence with the resource dependence theory which posit that female directors (female CEO) bring to the board different perspectives and experiences thus will most likely protect the interest of the firm and shield her from financial distress situations. Therefore, we carefully recommend that adopting policies such as “gender quotas” that will allow women act as CEOs’ will go a long way up to extend a organizations’ life span.
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Copyright (c) 2021 Edeh Lawrence, Oyekezie Kingsley, Ifurueze Priscilla
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