CEO characteristics and capital structure dynamics: evidence from a transitional economy

Ha Trang Le; Thao Nguyen; Ahmed Imran Hunjra; Cameron Truong; Collins Ntim

doi:10.1016/j.ememar.2024.101231

CEO characteristics and capital structure dynamics: evidence from a transitional economy

Ha Trang Le, Thao Nguyen, Ahmed Imran Hunjra, Cameron Truong, Collins Ntim

Department of Accounting

Research output: Contribution to journal › Article › Research › peer-review

Abstract

We investigate the relationship between CEO characteristics and the speed of adjustment (SOA) of capital structure for listed firms in Vietnam over the period 2000–2023. Our findings demonstrate that CEO gender, age, and education increase the SOA, but CEO tenure decreases the SOA. State ownership and firm size are closely associated with adjustment costs of capital structure. Our findings reveal that in State-Owned Enterprises (SOEs), long-tenured CEOs have a positive effect on the SOA, while the impact of CEO qualifications on the SOA is negative. The role of CEO characteristics is more pronounced during the COVID-19 pandemic.

Original language	English
Article number	101231
Number of pages	22
Journal	Emerging Markets Review
Volume	64
DOIs	https://doi.org/10.1016/j.ememar.2024.101231
Publication status	Published - Jan 2025

Keywords

Capital structure
CEO characteristics
Speed of adjustment
State-owned enterprises

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10.1016/j.ememar.2024.101231

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title = "CEO characteristics and capital structure dynamics: evidence from a transitional economy",

abstract = "We investigate the relationship between CEO characteristics and the speed of adjustment (SOA) of capital structure for listed firms in Vietnam over the period 2000–2023. Our findings demonstrate that CEO gender, age, and education increase the SOA, but CEO tenure decreases the SOA. State ownership and firm size are closely associated with adjustment costs of capital structure. Our findings reveal that in State-Owned Enterprises (SOEs), long-tenured CEOs have a positive effect on the SOA, while the impact of CEO qualifications on the SOA is negative. The role of CEO characteristics is more pronounced during the COVID-19 pandemic.",

keywords = "Capital structure, CEO characteristics, Speed of adjustment, State-owned enterprises",

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AU - Truong, Cameron

AU - Ntim, Collins

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N2 - We investigate the relationship between CEO characteristics and the speed of adjustment (SOA) of capital structure for listed firms in Vietnam over the period 2000–2023. Our findings demonstrate that CEO gender, age, and education increase the SOA, but CEO tenure decreases the SOA. State ownership and firm size are closely associated with adjustment costs of capital structure. Our findings reveal that in State-Owned Enterprises (SOEs), long-tenured CEOs have a positive effect on the SOA, while the impact of CEO qualifications on the SOA is negative. The role of CEO characteristics is more pronounced during the COVID-19 pandemic.

AB - We investigate the relationship between CEO characteristics and the speed of adjustment (SOA) of capital structure for listed firms in Vietnam over the period 2000–2023. Our findings demonstrate that CEO gender, age, and education increase the SOA, but CEO tenure decreases the SOA. State ownership and firm size are closely associated with adjustment costs of capital structure. Our findings reveal that in State-Owned Enterprises (SOEs), long-tenured CEOs have a positive effect on the SOA, while the impact of CEO qualifications on the SOA is negative. The role of CEO characteristics is more pronounced during the COVID-19 pandemic.

KW - Capital structure

KW - CEO characteristics

KW - Speed of adjustment

KW - State-owned enterprises

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VL - 64

JO - Emerging Markets Review

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ER -

CEO characteristics and capital structure dynamics: evidence from a transitional economy

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Keywords

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