C-Suite Bias, Firm Characteristics, and Capital Structure Decisions of Quoted Industrial Firms in Nigeria
Most people exaggerate their own skills and accomplishments, which can have disastrous results. The C-suite has a tremendous impact on business choices, as decisions made in the workplace can be skewed by unconscious prejudice, and this bias can have negative consequences. Therefore, this study expl...
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| Format: | Article |
| Language: | English |
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Faculty of Management & Finance, University of Colombo
2022-12-01
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| Series: | Colombo Business Journal |
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| Online Access: | https://mgmt.cmb.ac.lk/cbj/wp-content/uploads/2022/12/2.-CBJ-2022-ACT-2-Formatted-Final-C-Suite-Bias.pdf |
| Summary: | Most people exaggerate their own skills and accomplishments, which can have disastrous results. The C-suite has a tremendous impact on business choices, as decisions made in the workplace can be skewed by unconscious prejudice, and this bias can have negative consequences. Therefore, this study explores C-suite bias, firm characteristics, and capital structure decisions of quoted industrial goods firms in Nigeria. Data from 2002 to 2020 was used in an ex-post-facto research design while pooled OLS was used for analyses. The study found that C-suite tenure had a favourable influence on capital structure, suggesting that the duration during which C-suite executives govern their firms’ affairs has a beneficial effect on the capital structure decisions. Therefore, the study advances that corporations should enable C-suite members to serve for a longer period of time; because the longer they remain at the helm of the company’s affairs, the better their capital structure decisions. |
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| ISSN: | 1800-363X 2579-2210 |