Impact of CEO’s Characteristics on Firm Performance: the Case of Vietnam
Main Article Content
Abstract
Using a sample of 248 firms on Hanoi and Ho Chi Minh City stock exchanges, we shows that education level and tenure of the CEOs do not have any impact on the performance of Vietnamese firms. However, when the CEOs hold the undergraduate degree, tenure has a positive impact on the performance of Vietnamese firms. Firms with female CEOs realize a significantly lower operation efficiency compared to that of firms with male CEOs. Moreover, splitting CEO and chairperson roles has a positive impact on the performance of Vietnamese firms.
Article Details
Keywords
Corporate Governance, Behavior Finance, Financial Risk and Risk Management
References
REFERENCES
1. Adams, S.M., Gupta, A., Haughton, D.M., and Leeth, J.D., 2007. Gender differences in CEO compensation: evidence from the USA. Women in Management Review 22 (3), 208–224.
2. Baliga, B.R. and Moyer, R.C., 1996. CEO duality and firm performance: what’s the fuss? Strategic Management Journal 17, 41-43.
3. Bantel, K.A. and S.E. Jackson, 1989. Top management innovations in banking: Does the composition of the top team make a difference? Strategic Management Journal 10, 107- 124.
4. Baysinger, B. and Hoskisson, R.E., 1990. The composition of boards of directors and strategic control: Effects on corporate strategy. Academy of Management Review, 15(1), 72–87.
5. Bhagat, S., Bolton, B. J., and Subramanian, A., 2010. CEO education, CEO turnover, and firm performance. Rochester: doi:http://dx.doi.org/10.2139/ssrn.1670219.
6. Brickley, J., Coles, J., and Jarrell, G., 1997. Leadership structure: Separating the CEO and Chairman of the Board. Journal of Corporate Finance 3, 189-220.
7. Burress, J.H. and Zucca, L.J., 2004. The gender equity gap in top corporate executive Positions. Mid-American Journal of Business 19 (1), 55–62.
8. Campbell, K., and Minguez-Vera, A., 2008. Gender diversity in the boardroom and firm financial performance. Journal of Business Ethics, 83(3): 435–451.
9. Dallas, L., 2002. The new managerialism and diversity on corporate boards of directors. Tulane Law Review, 76(5–6), 1363–1405.
10. Dey, A., Engel, E., and Liu, X., 2011. CEO and board chair roles: To split or not to split. Journal of Corporate Finance 17, 1595–1618.
11. Dwyer, S., Richard, O. C. and Chadwick, K., 2003. Gender diversity in management and firm performance: The influence of growth orientation and organizational culture. Journal of Business Research 56(12), 1009–1019.
12. Eagly, A. H., and Carli, L. L., 2003. The female leadership advantage: An evaluation of the evidence. Leadership Quarterly 14(6), 807–834.
13. Fondas, N., and Sassalos, S., 2000.. A different voice in the boardroom: How the presence of women directors affects board influence over management. Global Focus 12(1), 13–22.
14. Gottesman, A. A. and Morey. M.R., 2006. Does a better education make for better managers? An empirical examination of CEO educational quality and firm performance. Available at SSRN: http://ssrn.com/abstract=564443
15. Hitt, M.A., and Tyler, B.B., 1991. Strategic decision models: Integrating different perspectives. Strategic Management Journal 12, 327-351.
16. Huson, Mark R., Robert Parrino and Laura T Starks., 2001. Internal monitoring mechanisms and CEO turnover: A long-term perspective. Journal of Finance 56(6), 2265-97.
17. Iyengar R.J. and Zampelli E.M., 2009. Self-selection, endogeneity, and the relationship between CEO duality and firm performance. Strategic Management Journal 30(10), 1092–1112.
18. Kimberly, J.R. and Evansiko M.J., 1981. Organizational innovation: The influence of individual, organizational, and contextual factors on hospital adoption of technical and administrative innovations. Academy of Management Journal 24, 689-713.
19. Krishnan, G.V. and Parsons, L.M., 2008. Getting to the bottom line: an exploration of gender and earnings quality. Journal of Business Ethics 78, 65–76
20. Lee I. H. and Marvel M. R., 2014. Revisiting the entrepreneur gender–performance relationship: a firm perspective. Small Business Economics 42(4): 769-786.
21. Palia, D., 2001. The endogeneity of managerial compensation in firm valuation: A solution. Review of Financial Studies 14, 735-764.
22. Peni E., 2012. Essays on the Effects of Female Executives and Experts on Corporate Governance and Financial Reporting Practices. Acta Wasaensia, 255.
23. Pi, L. and Timme, S., 1993. Corporate control and bank efficiency. Journal of Banking & Finance 17, 515-530.
24. Rechner, P. and Dalton, D., 1991. CEO duality and organizational performance: A longitudinal analysis. Strategic Management Journal 12(2), 155-160.
25. Ryan, Harley E., Jr. and Roy A. Wiggins III., 2001. The influence of firm and manager specific characteristics on the structure of executive compensation. Journal of Corporate Finance 7(2), 101-23.
26. Schubert, R., 2006. Analyzing and managing risks on the importance of gender difference in risk attitudes. Managerial Finance 32(9), 706–715.
27. Simsek Z., 2007. CEO tenure and organizational performance: an intervening model. Strategic Management Journal 28(6): 653–662.
28. Wally, S. and Baum J., 1994. Personal and structural determinants of the pace of strategic decision making. Academy of Management Journal 37, 932-956.
1. Adams, S.M., Gupta, A., Haughton, D.M., and Leeth, J.D., 2007. Gender differences in CEO compensation: evidence from the USA. Women in Management Review 22 (3), 208–224.
2. Baliga, B.R. and Moyer, R.C., 1996. CEO duality and firm performance: what’s the fuss? Strategic Management Journal 17, 41-43.
3. Bantel, K.A. and S.E. Jackson, 1989. Top management innovations in banking: Does the composition of the top team make a difference? Strategic Management Journal 10, 107- 124.
4. Baysinger, B. and Hoskisson, R.E., 1990. The composition of boards of directors and strategic control: Effects on corporate strategy. Academy of Management Review, 15(1), 72–87.
5. Bhagat, S., Bolton, B. J., and Subramanian, A., 2010. CEO education, CEO turnover, and firm performance. Rochester: doi:http://dx.doi.org/10.2139/ssrn.1670219.
6. Brickley, J., Coles, J., and Jarrell, G., 1997. Leadership structure: Separating the CEO and Chairman of the Board. Journal of Corporate Finance 3, 189-220.
7. Burress, J.H. and Zucca, L.J., 2004. The gender equity gap in top corporate executive Positions. Mid-American Journal of Business 19 (1), 55–62.
8. Campbell, K., and Minguez-Vera, A., 2008. Gender diversity in the boardroom and firm financial performance. Journal of Business Ethics, 83(3): 435–451.
9. Dallas, L., 2002. The new managerialism and diversity on corporate boards of directors. Tulane Law Review, 76(5–6), 1363–1405.
10. Dey, A., Engel, E., and Liu, X., 2011. CEO and board chair roles: To split or not to split. Journal of Corporate Finance 17, 1595–1618.
11. Dwyer, S., Richard, O. C. and Chadwick, K., 2003. Gender diversity in management and firm performance: The influence of growth orientation and organizational culture. Journal of Business Research 56(12), 1009–1019.
12. Eagly, A. H., and Carli, L. L., 2003. The female leadership advantage: An evaluation of the evidence. Leadership Quarterly 14(6), 807–834.
13. Fondas, N., and Sassalos, S., 2000.. A different voice in the boardroom: How the presence of women directors affects board influence over management. Global Focus 12(1), 13–22.
14. Gottesman, A. A. and Morey. M.R., 2006. Does a better education make for better managers? An empirical examination of CEO educational quality and firm performance. Available at SSRN: http://ssrn.com/abstract=564443
15. Hitt, M.A., and Tyler, B.B., 1991. Strategic decision models: Integrating different perspectives. Strategic Management Journal 12, 327-351.
16. Huson, Mark R., Robert Parrino and Laura T Starks., 2001. Internal monitoring mechanisms and CEO turnover: A long-term perspective. Journal of Finance 56(6), 2265-97.
17. Iyengar R.J. and Zampelli E.M., 2009. Self-selection, endogeneity, and the relationship between CEO duality and firm performance. Strategic Management Journal 30(10), 1092–1112.
18. Kimberly, J.R. and Evansiko M.J., 1981. Organizational innovation: The influence of individual, organizational, and contextual factors on hospital adoption of technical and administrative innovations. Academy of Management Journal 24, 689-713.
19. Krishnan, G.V. and Parsons, L.M., 2008. Getting to the bottom line: an exploration of gender and earnings quality. Journal of Business Ethics 78, 65–76
20. Lee I. H. and Marvel M. R., 2014. Revisiting the entrepreneur gender–performance relationship: a firm perspective. Small Business Economics 42(4): 769-786.
21. Palia, D., 2001. The endogeneity of managerial compensation in firm valuation: A solution. Review of Financial Studies 14, 735-764.
22. Peni E., 2012. Essays on the Effects of Female Executives and Experts on Corporate Governance and Financial Reporting Practices. Acta Wasaensia, 255.
23. Pi, L. and Timme, S., 1993. Corporate control and bank efficiency. Journal of Banking & Finance 17, 515-530.
24. Rechner, P. and Dalton, D., 1991. CEO duality and organizational performance: A longitudinal analysis. Strategic Management Journal 12(2), 155-160.
25. Ryan, Harley E., Jr. and Roy A. Wiggins III., 2001. The influence of firm and manager specific characteristics on the structure of executive compensation. Journal of Corporate Finance 7(2), 101-23.
26. Schubert, R., 2006. Analyzing and managing risks on the importance of gender difference in risk attitudes. Managerial Finance 32(9), 706–715.
27. Simsek Z., 2007. CEO tenure and organizational performance: an intervening model. Strategic Management Journal 28(6): 653–662.
28. Wally, S. and Baum J., 1994. Personal and structural determinants of the pace of strategic decision making. Academy of Management Journal 37, 932-956.