CEO characteristics and corporate financial performance: A case study of the Iranian capital market

Document Type : Original Article

Authors

Department of Accounting, Ayandegan Institute of Higher Education, Tonekabon, Iran.

Abstract
Purpose: This study aims to investigate the effect of CEO characteristics on corporate financial performance.
Methodology: This study examined companies listed on the Tehran Stock Exchange (TSE) from 2013 to 2023. Panel data was used to estimate and test the models. Three indicators (CEO ownership, CEO duality, and CEO tenure) were used for CEO characteristics, and the Return on Equity (ROE) index was used to evaluate corporate financial performance.
Findings: The study's results showed a positive and significant relationship between CEO ownership, CEO tenure, and corporate financial performance ROE. Also, CEO duality is not significantly related to corporate financial performance or ROE.
Originality/Value: This study is among the few that examine the impact of individual CEO characteristics (ownership, tenure, and duality) on the financial performance of companies in an emerging market such as Iran. Given the institutional, economic, and governance differences between Iran and other countries, the findings of this study contribute to the international literature on corporate governance. This finding is also important for corporate policymakers and shareholders when selecting and evaluating senior managers.

Keywords

Subjects

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