CEO's Personal Characteristics Influence on the Company`s Perfomance

Over the last 2 decades, the number of studies, which are aimed to explore the influence of Chief Executive Officer’s characteristics on the company’s indicators, has been growing rapidly. However, the majority of authors examines the correlations using data of companies from developed markets. Meanwhile, the role of CEO, as remarked, on developing markets is more significant but not examined so far, so that such research is interesting enough. This paper focuses on the relationship between CEO’s characteristics (age, number of shares owned, duality, MBA degree, the match of education and industry) and firm performance. Using sample of companies from Brazil, China, India, Russia and South Africa it has been revealed that Q Tobin of firms, which are managed by CEO whose education correspond to industry, is higher. Moreover, it has been confirmed that the duality has negative influence on Q Tobin. The efficiency is measured as return of shares as well. It was found out that there are reverse U-shaped relationship between CEO age and return of equity and that the number of shares CEO owns is positively influences the return. The results might be used for screening candidates for CEO role and developing HR policy.