CHIEF EXCUTIVE OFFICERS’ CHARACTERISTICS AND CREDITWORTHINESS OF LISTED NON-FINANCIAL FIRMS ON THE NIGERIAN EXCHANGE GROUP
Abstract
This study investigated the influence of chief Executive Officers (CEO) characteristics on the creditworthiness of non-financial firms listed on the Nigerian Exchange Group, using firm size and leverage as control variables. CEO traits (tenure, gender, nationality, age, education, and ownership) were assessed against creditworthiness, measured by the Altman Z-score. Employing an ex-post facto design, the study analyzed a balanced panel of 18 consumer goods firms (2013–2023), selected based on consistent listing and data availability. Descriptive statistics, correlation analysis, and the regression technique were used with robustness checks. Results show no significant impact of CEO traits on creditworthiness at the 5% level, although CEO nationality was marginally significant at 10%, indicating that foreign leadership has modest benefits. Firm size positively influenced credit outcomes, whereas leverage had a strong negative effect. These findings contrast with global evidence, reflecting executive traits’ limited role in Nigeria’s weak governance environment. This study contributes to the literature on emerging markets and affirms the utility of the Altman Z-score in credit risk assessment
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CEO characteristics, Creditworthiness, Altman Z-Score, Emerging Markets, Corporate GovernanceDownloads
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Copyright (c) 2025 Eseoghene Jerry Obukata , Edirin Jeroh
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