Effect of Chief Executive officer (CEO) Dynamism on Firm Value of Listed Commercial Banks: Evidence from Nigeria

• Post by: airjournals
• September 8, 2023
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Jide Ibikunle¹, Kelvin Ugwu²

¹²Department of Accountancy, Enugu State University of Science and Technology, Nigeria

Abstract This study evaluates the effect of Chief Executive Officer (CEO) dynamics on firm value of listed commercial bank in Nigeria. The study adopted ex-post facto research design and used secondary data collected from ten years audited annual accounts of 16 listed commercial banks. The dependent variable for the study is earning per share, while CEO ownership, CEO gender diversity and CEO reputation are used for the independent variables. The data collected were analyzed using descriptive statistics, correlation analysis and regression analysis. The findings revealed a positive and significant influence of CEO ownership on value of listed commercial banks in Nigeria. This implies that having more ownership interest by the bank CEO adds value to the banks and brings about positive effect on the performance. The regression results revealed a positive statistically significant relationship between CEO gender diversity and value of listed commercial banks in Nigeria for the period investigated. This means that an increase in the numbers of women CEO of banks improves their value and hence the level of financial performance. This result may imply that increasing the number of female CEO could increase the board’s monitoring since women are more inquisitive than male director. Board reputation has a positive but insignificant impact on value of listed commercial banks in Nigeria which implies that more numbers of CEO with national honor enhances the value of the banks and hence increases their financial performance insignificantly. It is therefore recommended that in order to boost and ensure continuous improvement of earnings of commercial banks in Nigeria. The board should ensure that the management cut across people with national honors. Furthermore, appointment of women to the banks board should be part of the cardinal point to be considered during appointment of CEO of banks. Keywords CEO Dynamics; Firm Value; CEO Reputation; CEO Ownership; Firm value of Listed Commercial Banks Citation: Ibikunle, J. & Ugwu, K. (2023).  Effect of Chief Executive officer (CEO) Dynamism on Firm Value of Listed Commercial Banks Evidence from Nigeria. International Journal of Advanced Finance and Accounting, 4(3), 13-25 https://doi.org/10.5281/zenodo.8328008