C-Suite Bias, Firm Characteristics, and Capital Structure Decisions of Quoted Industrial Firms in Nigeria
Temitope Olamide Fagbemi 
Maryam Ayobami Kolawole
Ezekiel A. Adigbole
Segun Abogun
Abstract
Most people exaggerate their own skills and accomplishments, which can have disastrous results. The C-suite has a tremendous impact on business choices, as decisions made in the workplace can be skewed by unconscious prejudice, and this bias can have negative consequences. Therefore, this study explores C-suite bias, firm characteristics, and capital structure decisions of quoted industrial goods firms in Nigeria. Data from 2002 to 2020 was used in an ex-post-facto research design while pooled OLS was used for analyses. The study found that C-suite tenure had a favourable influence on capital structure, suggesting that the duration during which C-suite executives govern their firms’ affairs has a beneficial effect on the capital structure decisions. Therefore, the study advances that corporations should enable C-suite members to serve for a longer period of time; because the longer they remain at the helm of the company’s affairs, the better their capital structure decisions.
Keywords: C-suites, Behavioural Accounting, Capital Structure, Biases, Overconfidence
Volume 13, Issue 2
December 31, 2022
Pages: 21-47
DOI: http://doi.org/10.4038/cbj.v13i2.123
Suggested citation:
Fagbemi, T.O., Kolawole, M.A., Adigbole, E. A., & Abogun, S. (2022). C-suite bias, firm characteristics, and capital structure decisions of quoted industrial firms in Nigeria. Colombo Business Journal, 13(2), 21–47. http://doi.org/10.4038/cbj.v13i2.123
Temitope Olamide Fagbemi
Aberdeen Business School, Robert Gordon University, Scotland
Maryam Ayobami Kolawole
Department of Accounting, University of Ilorin, Nigeria
Ezekiel A. Adigbole
Department of Accounting, University of Ilorin, Nigeria
Segun Abogun
Department of Accounting, University of Ilorin, Nigeria
