Abstract:
The relationship between CEO characteristics and firm’s performance had been debated over decades now and yet there is no conclusive evidence about what characteristics leave more impact. The characteristics studied till now include age, gender, education, tenure, compensation, ownership and duality to be the most. The purpose of this research was to find out the relationship between CEO characteristics and firm’s financial performance. The target population was all firms registered on Pakistan Stock Exchange between years 2012-2017. The data for variables was collected and downloaded from the official website of the companies, Pakistan Stock Exchange and State Bank of Pakistan. As being a developing country it was predicted that the results of this research will bring up new evidence supporting the theories brought in to light years ago. The results are quite satisfying as they are mostly following the theories especially most of the results are following agency theory. Following the prediction of agency theory this paper finds that duality, compensation and equity ownership do affect the firm performance positively while Leadership Lifecycle theory has failed to prove the positive relationship between tenure and firm performance as our results are insignificant for tenure.
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