Year of Graduation
The Impact of CEO’s Personal Qualities on a Company’s Capital Structure
This paper studies the impact of CEO`s personal qualities on the company`s capital structure. On the basis of the literature review, as regressors in our model included such factors as gender, age, education, work experience, duration of being on a post of CEO, as well as his status in the company. In other words, is it the owner of the business. The study is being conducted by a regression analysis of panel data of 1455 European companies in the period from 2008 to 2014. During research, we constructed Tobit model, as well as models with fixed and random effects. The result of the regression analysis is the positive impact between business owner and financial leverage of the company. Moreover, it is discovered a parabolic dependence of the experience and the ratio of borrowed funds to own. Also we determine the positive impact of an academic degree PhD, and the negative impact of the MBA degree on the capital structure of the company. Other variables were not significant.