Characteristics of a Chief Executive Officers and Business Value of Companies Listed on the Stock Exchange of Thailand: Case Studies of Service Businesses and Industrial Products
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Abstract
The objective of this study was to analyze the characteristics of the Chief Executive Officer (CEO) that influenced the business value of companies listed on the Stock Exchange of Thailand on service businesses and industrial products. This research uses secondary data sources from the years 2015 to 2019. The data were analyzed by structural equations. The results showed that the service business and the industry group had empirical data and the theoretical model after adjusting the variable error was harmoniously consistent. The characteristics of the chief executive officer has a positive influence on business value. The results show that there are three characteristics of the CEO: having a postgraduate education; having expertise in finance; previously serving as CEO; can cooperatively explain and forecast business value as measured by Return on Assets (ROA), Return on Equity (ROE), and firm value (Tobin's Q). It was also found that the most weighted element of a chief executive officer's characteristic was financial expertise. The most weighted element of a business's value is its return on assets (ROA).
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