The Relationship Between CEO Characteristics and Leverage: The Role of Independent Commissioners

• 발행기관: 한국유통과학회
• 저자명: Nilmawati NILMAWATI Wisnu UNTORO Bambang HADINUGROHO Atmaji ATMAJI
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 8 No.4, 787~796쪽, 전체 10쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2021.04.30

영문 초록

This study investigates the effect of chief executive officers (CEO) demographic characteristics such as age, functional experience, education, and gender, on corporate leverage decisions. This study investigates the independent commissioner’s role in moderating the relationship between CEO demographic characteristics and leverage decisions. The data used is panel data with a sample of 283 nonfinancial companies listed on the Indonesia Stock Exchange (BEI) from 2010–2017. Moderated regression analysis is used as an analytical technique, with the selected model fixed effects model. The results showed that male and young CEOs were more risk-averse, so they tended to use debt more. However, this study found no evidence of the effect of CEO experience and education on leverage. This study finds evidence that independent commissioners reduce the influence of CEO age and gender on leverage decisions. It shows the role of independent commissioners in controlling risk-taking from male and young CEOs related to leverage decisions. These results become input for companies to consider demographic characteristics in choosing a CEO. Also, companies need a board (in this study seen from independent commissioners) that is strong enough to control the CEO regarding risky decision making, such as leverage decisions.

목차

1. Introduction

2. Literature Review

3. Material and Methods

4. Results and Discussion

5. Conclusion

키워드

CEO Demographic Characteristics Leverage Board Commissioners