Chief Executive Officer Characteristics and Financial Performance of Construction and Allied Firms Listed at the Nairobi Securities Exchange, Kenya
Oliver Mukweyi Pyoko
ICT Authority, Kenya.
Tachio Alexandra Alex
Writestep Consulting Limited, Nigeria.
Malgit Amos Akims *
School of Business and Economics, Mount Kigali University, Rwanda.
Adetola Ope Adesanya
University of Lagos Business School, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
The study sought to evaluate the effect of chief executive officer characteristics on financial performance of construction and Allied Firms Listed at the Nairobi Securities Exchange, Kenya. Agency theory and stewardship theory were used to support the relationship between the study variables. Four construction and allied firms listed at the Nairobi Securities Exchange, Kenya constituted the target population of the study and a census approach was utilized since the target population comprised of only four firms. Secondary data was collected from the audited financial statements of listed construction and allied firms for the period 2018 to 2023. Empirical findings from the panel regression analysis established that chief executive officer nationality and age had significant effect on firm value of construction and allied firms listed at the Nairobi Securities Exchange, Kenya. The study concluded that chief executive officer nationality had significant effect on financial performance of construction and allied firms listed at the Nairobi Securities Exchange, Kenya. It is recommended that the management team of construction and allied firms listed at the Nairobi Securities Exchange, Kenya. The study concluded that chief executive officer age had significant effect implications for financial performance of construction and allied firms listed at the Nairobi Securities Exchange, Kenya. Older and more experienced chief executive officers are recommended for construction and allied firms listed at the Nairobi Securities Exchange, Kenya.
Keywords: Chief executive officer age, chief executive officer characteristics, chief executive officer nationality, financial performance