Investigating the Relationship Between CEO Characteristics and their Interactive Composition with Financial Risk Volatility

Subject Areas : Financial Management

,Seyed Mehdi miraeez ¹ (Master of Accounting, Department of Accounting, Payame Noor University of Tehran, Iran)
Seyed Hesam Vaghfi ² (Assistant Professor, Department of Accounting, Faculty of Management and Accounting, Payame Noor University, Tehran, Iran.)

Received: 2022-04-04 Accepted : 2022-07-08 Published : 2022-05-22

Keywords: CEO ability, CEO influence, CEO experience, Financial Risk Volatility,

Abstract :

The main purpose of this study is to investigate the relationship between the characteristics of the CEO in reducing financial risk volatility in companies listed on the Tehran Stock Exchange. The statistical population of the study was all companies listed on the Tehran Stock Exchange and using the systematic elimination sampling method, 124 companies were selected as the research sample and surveyed over a period of 10 years between 1390 and 1399. The results of testing the research hypotheses showed that in the first hypothesis, there is no significant relationship between CEO experience and financial risk volatility. Still, the second and third hypotheses showed that there is an inverse and significant relationship between CEO ability and CEO influence on financial risk volatility. The fourth hypothesis showed that there is a significant relationship between the ability and experience of the CEO with the fluctuation of financial risk. The fifth hypothesis showed that there is no significant relationship between the ability and influence of the CEO with the fluctuation of financial risk. Hypotheses 6 and 7 showed that there is a significant inverse relationship between CEO influence and CEO experience as well as CEO ability, influence, and experience with financial risk fluctuations.

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