Generalist CEO and Firm Performance: Evidence from Indonesia

Diyah Kusuma Wardhani, Tastaftiyan Risfandy, Yunieta Anny Nainggolan and Bowo Setiyono

A chapter in Macroeconomic Risk and Growth in the Southeast Asian Countries: Insight from Indonesia, 2023, vol. 33A, pp 171-179 from Emerald Group Publishing Limited

Abstract: The authors examine the impact of CEO generalist experience on firm performance. Using 522 listed firms in Indonesia for the period 2010–2018, the authors find that the generalist CEO is negatively associated with firm performance. Generalist CEOs tend to experience ambiguity in adjustments in the new environment. In order to decrease the impact of a generalist CEO, our empirical evidence finds that CEO tenure does not significantly moderate the association between the two. This is because generalist CEOs with longer tenure tend to avoid changing strategies, and therefore the negative impact of CEO generalist is not altered. The results of this study provide suggestions for the firm in the developing country to appoint a CEO with generalist experience.

Keywords: Generalist CEO; firm performance; CEO tenure; career experience; company resources; developing country; Indonesia; G2; G3; G38 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eme:isetez:s1571-03862023000033a012

DOI: 10.1108/S1571-03862023000033A012

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