The impact of CEO attributes on firm value: Moderating role of firm size

Abstract

This study used panel data analysis to examine the relationships between cash flow from operating to asset, CEO ownership, CEO duality (as the independent variables) and firm value proxied by Tobin's Q (as the dependent variable) and firm size (as the moderator). A longitudinal approach was used to examine secondary Data which were collected from 50 non-financial firms listed on the Nigerian Exchange Group between 2011 and 2021. The data for the study were analysed using STATA 14 software. Financial metrics and ratios were used to estimate the relationships between the variables while diagnostic tests such as the Hausman test was conducted to select the appropriate panel data model. Based on the results of the test statistic of 5.11, with a p-value of 0.2764, which indicates that the p-value (Prob>chi2) is greater than the significance level (typically 0.05), therefore, we fail to reject the null hypothesis. The findings suggest a weak positive relationship between Tobin's Q and CFOA, a weak negative relationship between Tobin's Q and CEO Ownership, a very weak positive relationship between Tobin's Q and CEO Duality, and a very weak negative relationship between Tobin's Q and Firm Size. Consequently, we recommend that Policymakers should encourage firms to improve transparency and disclosure practices, promote and enforce financial literacy advocacy to increase stakeholder awareness, strengthen corporate governance practices to address concerns related to CEO ownership and CEO duality, and also initiate strategic planning and growth initiatives in a bid to drive long-term value creation.