Analysis of the impact of CEO'S personal characteristics on the investment attractiveness of corporations

Abstract

Importance: the chief executive officer (CEO) along with other top managers is an integral part of the intellectual capital of the corporation, where the element is the personal brand of the head, purposefully forming the investment attractiveness of the corporation in the perception of investors. Purpose: to summarize approaches to assessing the investment attractiveness of a corporation and to analyze the impact of CEO’s personal characteristics on the average annual rate of change in the corporation’s market capitalization, annual volatility and Tobin’s coefficient. Research design: the methods of grouping, comparison, generalization, analysis and synthesis, correlation and regression analysis were used in conducting the research. In the course of empirical research, 13 CEO personal characteristics and three indicators of investment attractiveness of 619 large corporations were selected. Results: the level of investment attractiveness of corporations depends on the following personal characteristics of CEOs: age at the time of taking office, marital status, specialty of education, tenure, and method of entry into office. The variables «age at the time of taking office» and «mode of entry into office» are the only variables that are significant for all three dependent variables – the average annual rate of change in corporate market capitalization, annual volatility, and the Tobin coefficient. Among the quantitative independent variables, only «age at entry to office» is significant.