Document Type

Thesis - Open Access

Award Date

2022

Degree Name

Master of Science (MS)

Department / School

Economics

First Advisor

Nacasius Ujah

Keywords

Finance, Firm Efficiency, GAI, Management

Abstract

This paper investigates the connection between CEO types and firm efficiency. I utilize the general ability index (GAI) as a proxy to examine and separate CEO types: generalist CEOs and specialist CEOs. Initially, I applied the pooled ordinary least square (OLS) and fixed effect regression on 26,830 firm-year observations to explore the GAI effect on firm efficiency. The finding shows that GAI has a negative impact on firm efficiency. It indicates that CEOs with lower GAI are better at improving firm efficiency; for instance, specialist CEOs are preferable to generalist CEOs. Further analysis of CEO types using the quadrant method supports this result.

Number of Pages

45

Publisher

South Dakota State University

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Rights Statement

In Copyright