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The Mediating Role of Sustainable Growth Rate on the Association Between CEO Characteristics and Share Prices: Proof from Palestine

Author

Listed:
  • Abdulnaser I. Nour

    (An Najah National University)

  • Samah Ghassan Qarmash

    (An Najah National University)

  • Saed AlKoni

    (An Najah National University)

  • Duha Jamal Rabaia

    (An Najah National University
    An-Najah National University)

Abstract

This study explores the impact of chief executive officer (CEO) characteristics on the share price, specifically focusing on the mediating role of the sustainable growth rate (SGR). It employs a quantitative methodology to analyze data from industrial firms listed on the Palestine Stock Exchanges from 2016 to 2022. The analysis utilizes multivariate regression and Sobel tests. The results indicate that CEO characteristics have a significant effect on share prices. While CEO education and experience show a marginally positive influence, CEO age appears to have a slight negative impact. The analysis also reveals that CEO and firm age negatively correlate with share price, in contrast to firm size and leverage, which exert positive impacts. Further, while CEO characteristics significantly influence SGR, the study finds that most CEO attributes, except for CEO age, do not significantly affect SGR. Despite SGR having a notable impact on share prices, it insignificantly mediates the relationship between CEO characteristics and share prices. Control variables included in the study indicate that firm age negatively correlates with share prices, while firm size and leverage are associated with positive effects. This research enriches the literature by mapping out the pathways through which CEO characteristics can affect share prices and highlights the importance of these attributes in investment decision-making and firm valuation strategies. Future research is suggested to include a wider set of CEO attributes, additional markets, and mediating variables over an extended period, offering insights for investors, regulatory bodies, and policymakers.

Suggested Citation

  • Abdulnaser I. Nour & Samah Ghassan Qarmash & Saed AlKoni & Duha Jamal Rabaia, 2025. "The Mediating Role of Sustainable Growth Rate on the Association Between CEO Characteristics and Share Prices: Proof from Palestine," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(4), pages 14476-14499, October.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:4:d:10.1007_s13132-024-02463-1
    DOI: 10.1007/s13132-024-02463-1
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