The 'CEO' Effect on the Performance of Brazilian Companies: An Empirical Study Using Measurable Characteristics

摘要

The experience and competence of CEOs may have a positive influence on the performance of firms. Using secondary data on the performance of 73 Brazilian listed companies and primary data collected through a survey of the social and demographic characteristics of CEOs we tested a set of hypotheses concerning the influence of CEOs on the performance of the firms they headed between 1997 and 2012. Specifically, we examined the relationships between CEOs' experience and competence regarding common accounting indicators. The results indicate that CEOs with diverse experience would not do better in dynamic environments, and that specific experience has a negative effect on performance. Furthermore, CEOs with formal education do not show better short-term performance, and tenure has an inverted U-shaped relationship with the firm's performance. This article helps to provide a better understanding of the behavior of Brazilian CEOs by examining their characteristics.