C-suite bias, firm characteristics, and capital structure decisions of quoted industrial firms in Nigeria.

Fagbemi, Temitope Olamide; Kolawole, Maryam Ayobami; Adigbole, Ezekiel A.; Abogun, Segun

Abstract

Most people exaggerate their own skills and accomplishments, which can have disastrous results. The C-suite has a tremendous impact on business choices, as decisions made in the workplace can be skewed by unconscious prejudice, and this bias can have negative consequences. Therefore, this study explores C-suite bias, firm characteristics, and capital structure decisions of quoted industrial goods firms in Nigeria. Data from 2002 to 2020 was used in an ex-post-facto research design while pooled OLS was used for analyses. The study found that C-suite tenure had a favourable influence on capital structure, suggesting that the duration during which C-suite executives govern their firms' affairs has a beneficial effect on the capital structure decisions. Therefore, the study advances that corporations should enable C-suite members to serve for a longer period of time; because the longer they remain at the helm of the company's affairs, the better their capital structure decisions.

Citation

FAGBEMI, T.O., KOLAWOLE, M.A., ADIGBOLE, E.A. and ABOGUN, S. 2023. C-suite bias, firm characteristics, and capital structure decisions of quoted industrial firms in Nigeria. Colombo business journal [online], 13(2), pages 21-47. Available from: https://doi.org/10.4038/cbj.v13i2.123

• Journal Article Type: Article
• Acceptance Date: Jun 14, 2022
• Online Publication Date: Dec 31, 2022
• Publication Date: Dec 31, 2022
• Deposit Date: Jun 5, 2023
• Publicly Available Date: Jun 5, 2023
• Journal: Colombo business journal
• Print ISSN: 1800-363X
• Electronic ISSN: 2579-2210
• Publisher: University of Colombo (Faculty of Management and Finance)
• Peer Reviewed: Peer Reviewed
• Volume: 13
• Issue: 2
• Pages: 21-47
• DOI: https://doi.org/10.4038/cbj.v13i2.123
• Keywords: C-suites; Behavioural accounting; Capital structure; Biases; Overconfidence
• Public URL: https://rgu-repository.worktribe.com/output/1973063