Impact Of CEO Characteristics On Corporate Investment Decisions

Abstract

The impact of the characteristics of CEO on corporate investment decisions is accessed in this study in the context of an emerging economy Pakistan. Data is collected from the firms of various non financial sectors listed on PSX from 2010-2022. For testing the hypothesis Generalized method of moments (GMM) models is used. Findings of the study reveal that CEO characteristics like age, education, experience and tenure significantly impact firm’s investment decisions. Empirical results helps investors, practioners, with improved decision making, by pinpointing the particular CEO traits that influence investment decisions. The insights may impact the formulation of regulations or guidelines regarding executive appointments and compensation. This research enhances our understanding of the factors driving corporate investment decisions and holds practical implications for firms, investors, and policymakers alike.

Keywords: CEO Characteristics, Age, Education, Experience, Tenure, Investment Decision.