EFFECT OF CHIEF EXECUTIVE OFFICER CHARACTERISTICS ON OPERATIONAL PERFORMANCE OF LISTED COMMERCIAL BANKS IN NIGERIA

Abstract

This study aims to explore how the characteristics of Chief Executive Officers affect the efficiency ratios of commercial banks in Nigeria. Specifically, it investigates the influence of Chief Executive Officer work experience, financial expertise, tenure, age, and nationality on bank performance. Employing a quantitative research design with an ex post facto approach, this study falls within the realm of positivism due to its quantitative nature. The research encompasses all the 14 commercial banks in Nigeria as of the study period, employing census sampling to select its sample. Secondary data sourced from the financial statements of these banks, as well as their websites, were analyzed using descriptive statistics and multiple linear regression via STATA 15. The findings suggest no significant relationship between the Chief Executive Officers' working experience, financial expertise, and nationality, and the efficiency ratios of listed commercial banks in Nigeria. However, the study reveals a significant correlation between Chief Executive Officer tenure, age, and bank efficiency ratios. Therefore, it is concluded that while Chief Executive Officer characteristics such as work experience, financial expertise, and nationality do not notably influence bank efficiency ratios, tenure and age do play a significant role in this regard. Based on these results, it's recommended that caution be exercised when using Chief Executive Officer characteristics such as work experience, financial expertise, and nationality as predictors of efficiency ratios in Nigerian listed commercial banks. Additionally, stakeholders and decision-makers in the banking sector should recognize and consider the impact of Chief Executive Officer tenure on efficiency ratios.