CEO attributes, investment decisions, and firm performance: New insights from upper echelons theory. (18th June 2021)

• Record Type: Journal Article
• Authors: Ali, Rizwan; Rehman, Ramiz Ur; Suleman, Sana; Ntim, Collins Gyakari
• Is Part Of: Managerial and decision economics. Volume 43:Number 2(2022)
• Page Start: 398
• Page End: 417
• Publication Date: 2021-06-18
• Subjects: Managerial economics -- Periodicals; Decision making -- Periodicals; Management -- Periodicals; 658.15
• DOI: 10.1002/mde.3389
• Languages: English
• ISSNs: 0143-6570

Abstract

Abstract : The study examines the role of a CEO in enhancing a firm's performance through the mediating effect of investment decisions in the emerging economy of Pakistan. Distinctly, fixed‐effects panel regression method is employed to examine the said nexus of nonfinancial firms listed at the Pakistan Stock Exchange. It is empirically unearthed that CEO attributes, namely, age, tenure, ownership, financial education, and career experience, are positively related to firm performance in general and capital investment decisions in particular. Second, capital investment decisions partially and significantly mediate the nexus between CEO attributes and firm performance with few exceptions that confirm the theoretical implications of upper echelons theory in an emerging economy context.