The Relationship Between CEO Power, Labor Productivity, and Company Value in the Iraqi Stock Exchange

Aqeel kadhim Hamad Hamad, Mahdi Salehi (), Jasim Idan Barrak, Anmar Adnan Khudhair and Hussen Amran Naji Al-Refiay
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Aqeel kadhim Hamad Hamad: Department of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad 9177948974, Iran
Mahdi Salehi: Department of Economics and Administrative Sciences, Ferdowsi University of Mashhad, Mashhad 9177948974, Iran
Jasim Idan Barrak: Department of Accounting, Administrations & Economics, University of Kerbala, Kerbala 964335027, Iraq
Anmar Adnan Khudhair: Department of Accounting, Administrations & Economics, University of Kerbala, Kerbala 964335027, Iraq
Hussen Amran Naji Al-Refiay: Department of Accounting, Administrations & Economics, University of Kerbala, Kerbala 964335027, Iraq

Risks, 2024, vol. 12, issue 11, 1-26

Abstract: The current study investigates the relationship between the CEO’s power, the workforce’s productivity, and the company’s value in Iraqi stock exchange companies. A sample of 34 companies listed on the Iraqi Stock Exchange from 2016 to 2021 was tested using a multiple regression model, a panel data approach, and a fixed effects model. CEO power is measured by the busing factor analysis approach, which integrates four indices: CEO salary, CEO ownership, CEO tenure, and CEO control over board members. The findings indicate a positive and significant relationship between CEO power and labor productivity. Also, there is a negative and significant relationship between CEO power and the stickiness of labor costs. On the other hand, we found a positive and significant relationship between the CEO power and firm value. In addition, labor cost stickiness has a positive effect on firm value. By highlighting the CEOs’ power, this research tries to increase companies’ attention to this issue and its effect on improving employment productivity, cost management, and firm value.

Keywords: CEO power; workforce efficiency; company value (search for similar items in EconPapers)
JEL-codes: C G0 G1 G2 G3 K2 M2 M4 (search for similar items in EconPapers)
Date: 2024
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