CEO Characteristics and their Impact on the Performance of U.S.-American S&P 500 Firms
Meltschakow, Marina (2020)
2020
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2020051511745
https://urn.fi/URN:NBN:fi:amk-2020051511745
Tiivistelmä
A CEO is capable of steering a company towards successful financial years however no two Chief Executive Officers are alike. CEOs have diverse background and demographic characteristics that might result in a different strategic decision-making approach that, in turn, could affect the firm performance.
The aim of the study was to examine how strong the impact of a CEO’s executive age, executive experience and executive busyness on the firm performance in the United States of America is. Additionally, the study should state whether investors should take a CEO’s characteristics into consideration when evaluating an investment option.
The theoretical framework is based on online articles in scientific journals, scientific studies, websites that deal with financial and economic issues and encyclopedias. The empirical part was based on one specific study and had a closer look at four S&P 500 companies. To conduct the empirical part, the financial websites Forbes and Reuters as well as the homepages of the companies and financial information from the company’s annual reports were incorporated.
The result of the study is the statement that a CEO’s executive age, executive experience and executive busyness has a rather weak impact on the performance of firms operating within the United States of America. This statement is especially backed up by the empirical part, which showed that other factors have a more significant impact on the firm performance than a CEO’s characteristics. Moreover, the study results in saying that investors should not necessarily keep a CEO’s characteristics in mind when evaluating an investment option.
The aim of the study was to examine how strong the impact of a CEO’s executive age, executive experience and executive busyness on the firm performance in the United States of America is. Additionally, the study should state whether investors should take a CEO’s characteristics into consideration when evaluating an investment option.
The theoretical framework is based on online articles in scientific journals, scientific studies, websites that deal with financial and economic issues and encyclopedias. The empirical part was based on one specific study and had a closer look at four S&P 500 companies. To conduct the empirical part, the financial websites Forbes and Reuters as well as the homepages of the companies and financial information from the company’s annual reports were incorporated.
The result of the study is the statement that a CEO’s executive age, executive experience and executive busyness has a rather weak impact on the performance of firms operating within the United States of America. This statement is especially backed up by the empirical part, which showed that other factors have a more significant impact on the firm performance than a CEO’s characteristics. Moreover, the study results in saying that investors should not necessarily keep a CEO’s characteristics in mind when evaluating an investment option.