CEO attributes and bank performance: does CEO compensation moderate?

Md. Mamunur Rashid and Md. Safiuddin

Asian Journal of Economics and Banking, 2025, vol. 10, issue 1, 61-80

Abstract: PurposeThis study examines the influence of chief executive officer (CEO) attributes on bank performance and explores whether CEO compensation moderates this relationship in the listed banking companies within an emerging economy.Design/methodology/approachThis study focuses on the 35 banking companies listed on the Dhaka Stock Exchange, the leading stock exchange in Bangladesh. Data were gathered from multiple sources over a 10-year period (2013–2022), resulting in a total of 320 firm-year observations, as data for five newly listed banks were unavailable for the entire study period. To analyze the direct and moderating effects and test the proposed hypotheses, AMOS 23 was employed for data analysis.FindingsThe study reveals a significant positive effect of CEO education and experience on return on assets (ROA) and a significant negative impact of CEO education on the TOBINQ ratio. However, the nature and strength of these relationships shift when CEO compensation interacts with the CEO attribute variables.Originality/valueThis study empirically examines how CEO attributes influence performance in publicly traded banking companies in an emerging economy. Additionally, the study explores the moderating role of CEO compensation in this relationship. While CEO compensation has been widely studied in developed markets, its influence as a moderating factor in emerging economies remains largely unexplored.

Keywords: CEO characteristics; CEO compensation; Emerging economy; Developing country; Bangladesh (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/ajeb/article/10/1/61/12783 ... performance-does-CEO (text/html)
https://www.emerald.com/ajeb/article-pdf/10/1/61/1 ... b-12-2024-0131en.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:ajebpp:ajeb-12-2024-0131

DOI: 10.1108/AJEB-12-2024-0131

Access Statistics for this article

Asian Journal of Economics and Banking is currently edited by Dr. Nguyen Ngoc Thach

More articles in Asian Journal of Economics and Banking from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().