IDEAS home Printed from https://ideas.repec.org/a/taf/oaefxx/v6y2018i1p1439258.html
   My bibliography  Save this article

Impact of CEO’s characteristics on investment decisions of Indian listed firms: Does crisis make any difference?

Author

Listed:
  • Gaurav Gupta
  • Jitendra Mahakud
  • Byomakesh Debata

Abstract

Using a sample of listed Indian manufacturing companies, this study examines the role of chief executive officer’s (CEO’s) personal characteristics like age, tenure, education, and career experience in the determination of investment decisions of the firm. The dynamic panel data model estimation, more specifically the system generalized method of moments estimation results reveal a negative relation between CEO’s age and corporate investment. CEO’s financial education is positively associated with investment decisions. The investment cash flow sensitivity analysis posits that CEO’s age and financial education reduce the sensitivity of investment with respect to cash flow. The results are robust across different periods, defined on the basis of crises. In times of financial crisis, we document that firm’s liquidity and age, CEO’s career experience and tenure turn out to be significant determinants of corporate investment. This paper provides an out-of-sample evidence of the role of CEO’s personal characteristics on the determination of corporate investment, which is an unexplored issue from an emerging market perspective.

Suggested Citation

  • Gaurav Gupta & Jitendra Mahakud & Byomakesh Debata, 2018. "Impact of CEO’s characteristics on investment decisions of Indian listed firms: Does crisis make any difference?," Cogent Economics & Finance, Taylor & Francis Journals, vol. 6(1), pages 1439258-143, January.
    • Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1439258
    DOI: 10.1080/23322039.2018.1439258
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23322039.2018.1439258
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/23322039.2018.1439258?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Moreno Domínguez, María Jesús & Martín Zamora, María Pilar & Serrano Czaia, Isabel & Rodríguez Ariza, Lázaro, 2022. "Reputation and leadership: a study about reputational transfer in family and non-family firms," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    2. Gaurav Gupta, 2022. "CEO's age and investment‐cash flow sensitivity," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2212-2224, September.
    3. Trustmore Bekapi, 2023. "Impact of Institutional Investors and Board Independence on Corporate Short-Termism: Longitudinal Evidence from Zimbabwe," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(9), pages 1531-1552, September.
    4. Rupinder Kaur & Balwinder Singh, 2018. "CEOs’ Characteristics and Firm Performance: A Study of Indian Firms," Indian Journal of Corporate Governance, , vol. 11(2), pages 185-200, December.
    5. Quynh Trang Phan & Poomthan Rangkakulnuwat, 2022. "How price informativeness affects the sensitivity of investment-to-stock price in Vietnamese listed firms," Afro-Asian Journal of Finance and Accounting, Inderscience Enterprises Ltd, vol. 12(1), pages 28-61.
    6. Tutun Mukherjee & Som Sankar Sen, 2022. "Impact of CEO attributes on corporate reputation, financial performance, and corporate sustainable growth: evidence from India," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-50, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1439258. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/OAEF20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.