Abstract

New technologies and increased competition require CEOs to assess and analyze vast amounts of information. They need cognitive ability and higher education and training. Moreover, CEOs are under more pressure to act quickly, to recognize potential problems or opportunities, and to take action immediately. They must be willing to take risks (Joos, Leone, & Zimmerman, 2003). Companies are turning to younger CEOs (Loomis, 2007) as they are more familiar with new technologies, better able to endure high stress environments, more open to new ideas, and less reluctant to take risks. This study examined the relationship between the financial performance of a company and specific demographic factors of its CEO, including age, tenure, education, and prior experience, and whether the CEO was hired from within or outside the company. Also, the study examined the relationship between CEO's age and tenure before and after the repeal of the Glass-Steagall Act (1999). The goal was to establish a prediction model, based on demographics of successful financial industry CEOs, to aid companies in their selection of new CEOs. The data were collected from U.S. companies in the insurance, securities, diversified financial, commercial banks, and IT industries which file financial statements with a government agency. The findings indicate a significant difference in: * a new insurance CEO's age and tenure before and after the repeal of the Glass-Steagall Act (1999) * the age of new CEOs of insurance companies and that of their counterparts at other types of financial institutions or IT companies. There was no significant difference in the level of education or tenure. x There was a significant correlation between: * the changes in return on equity and the variables of age, school tier, degree, and prior experience * changes in revenue, in stock price, and in return on equity and the variables of firm size, the new CEO's origin, and tenure * changes in stock price and a new CEO who graduated from school tier three or four (below average undergraduate schools). There was no significant correlation between a new CEO's age, school tier, degree, and prior experiences, and a company's change in revenue or in its stock price.

Library of Congress Subject Headings

Business Administration -- Management; Dissertations (EdD) -- Organizational leadership; Leadership; Executives

Date of Award

2010

School Affiliation

Graduate School of Education and Psychology

Department/Program

Education

Degree Type

Dissertation

Degree Name

Doctorate

Faculty Advisor

Penderghast, Thomas

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