Chief executive officer attributes, stock's liquidity, and firm's performance

Abstract

AbstractThis study unfolds the CEO attributes, stock liquidity, and firms' performance nexus, drawing from an individual's personality attributes who hold the highest managerial positions. The fixed‐effect panel regression method is employed using nonfinancial firms listed at Pakistan Stock Exchange from 2011 to 2020. Significantly, CEOs' age, tenure, and ownership are positively associated with stock liquidity and firms' performance. Additionally, stock liquidity partially mediates the said nexus. This study provides new insights which confirm the theoretical implications of upper echelons theory which means specific attributes of an individual i.e., CEO can cause better performance of a firm.