C-suite bias, firm characteristics, and capital structure decisions of quoted industrial firms in Nigeria.
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Date
2022-12
Journal Title
Journal ISSN
Volume Title
Publisher
Faculty of Management & Finance, University of Colombo
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.
Description
Keywords
C-suites, Behavioural Accounting, Capital Structure, Biases, Overconfidence
Citation
Fagbemi, T.O., Kolawole, M.A., Adigbole, E. A., & Abogun, S. (2022). C-suite bias, firm characteristics, and capital structure decisions of quoted industrial firms in Nigeria. Colombo Business Journal, 13(2), 21–47