Skip to content
Research Article Open access CC BY 4.0

CEO Power and Firm Value: Affirmative Action Implications

Wahyu Wijayanto, Giriati, Wendy, Helma Malini

Asian Journal of Economics, Business and Accounting · pp. 552–560 · Published 11 Jun 2024

10.9734/ajeba/2024/v24i61381

Abstract

Objective: This research aims to reveal the critical role of CEO leadership and affirmative action policies, particularly those related to gender equality, in enhancing firm value. Research Design: This study employs a quantitative design by analyzing secondary data from the ESG Intelligence Dataset and publications of the Indonesia Stock Exchange from 2017 to 2021. Population and Sample: The population of this research comprises non-financial companies listed in the Kompas 100 Index in Indonesia. The sample was selected using a purposive sampling method, yielding 42 companies per year, resulting in a total of 210 observations. Methodology: The data were analyzed using multiple regression analysis to examine the influence of CEO power and affirmative action on firm value. Findings: The research findings indicate that CEO leadership has a positive and significant impact on firm value. Affirmative action policies related to gender equality also play a positive role in strengthening the effect of CEO leadership on firm value. Conclusion: This research provides in-depth understanding and offers an innovative perspective for companies to optimize the role of CEOs and affirmative action policies to enhance long-term firm value. The primary recommendation is that companies should consider implementing affirmative action policies, especially those related to gender equality, to help align the interests of stakeholders and improve corporate governance.

CEO power affirmative action firm value

References (34)

  1. 1 Comparison of Convenience Sampling and Purposive Sampling [DOI]
  2. 2 CORPORATE INCOME TAXES AND THE COST OF CAPITAL: A CORRECTION
  3. 3 Outside directors and CEO turnover [DOI]
  4. 4 Theory of the firm; managerial Behavior, Agency Costs, and Ownership Structure [DOI]
  5. 5 Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns [DOI]
  6. 6 Has the “CEO effect” increased in recent decades? A new explanation for the great rise in America's attention to corporate leaders [DOI]
  7. 7 Capital Structure and Firm Size on Firm Value Moderated by Profitability [DOI]
  8. 8 Global corporate governance: On the relevance of firms’ ownership structure [DOI]
  9. 9 Does CEO power moderate the link between ESG performance and financial performance? [DOI]
  10. 10 Do gender diversity and CEO gender enhance firm’s value? Evidence from an emerging economy [DOI]
  11. 11 Does board gender enhance Palestinian firm performance? The moderating role of corporate social responsibility [DOI]
  12. 12 The Persistent Effect of Temporary Affirmative Action [DOI]
  13. 13 Board gender diversity and firm performance: evidence from Latin America [DOI]
  14. 14 The Impact of ESG Activities on Firm Value: Multi-Level Analysis of Industrial Characteristics [DOI]
  15. 15 CEO power, product market competition and firm value [DOI]
  16. 16 Does Board Gender Diversity Really Improve Firm Performance? Evidence from Greek Listed Firms [DOI]
  17. 17 CEO power and CSR: the moderating role of CEO characteristics [DOI]
  18. 18 The role of national culture in the impact of board gender diversity on firm performance: evidence from a multi-country study [DOI]
  19. 19 Chief executive officer power and board gender diversity [DOI]
  20. 20 Knowledge capital, CEO power, and firm value: Evidence from the IT industry [DOI]
  21. 21 Corporate Governance, Affirmative Action and Firm Value in Post‐apartheid South Africa: A Simultaneous Equation Approach [DOI]
  22. 22 Chief Executive Officer power and Corporate Sexual Orientation Equality [DOI]
  23. 23 Conceptualizing the Moderating Role of CEO Power and Ownership Concentration in the Relationship between Audit Committee and Firm Performance: Empirical Evidence from Pakistan [DOI]
  24. 24 Does CEO power matter for the performance of retrenchment strategy? [DOI]
  25. 25 The Impact of Women Power on Firm Value [DOI]
  26. 26 CEO power and the strategic selection of accounting financial experts to the audit committee [DOI]
  27. 27 Relationship Between CEO Power and Firm Value: Evidence from Indonesian Non-Financial Companies [DOI]
  28. 28 The impact of CEO power and institutional discretion on CSR investment [DOI]
  29. 29 The Effects of CEO Power on Firm Value: Evidence from the Financial Crisis of 2008 [DOI]
  30. 30 The impact of CEO power and ethical corporate citizenship on firms’ outcomes [DOI]
  31. 31 Founder teams and firm value in young public firms: An analysis of the moderating effect of founders' ownership power and team size [DOI]
  32. 32 Derivative Risk Information Disclosure Effect on Financial Reporting Quality Evidence from Selected Listed Deposit Money Banks in Nigeria [DOI]
  33. 33 Strategic leadership: theory and research on executives, top management teams, and boards [DOI]
  34. 34 Affirmative action for women in higher education and the civil service: The case of Ethiopia

Cited by 1

ESG disclosure, capital structure, and profitability in explaining firm value of Indonesia’s IDX ESG Leaders: Some notes from Islamic finance perspectives‎

Hastin Riska Dewi, Muhyarsyah Muhyarsyah · Journal of Islamic Economics Lariba · 2025

Related research

Article metrics

Real usage data collected on this platform.

21

Page views

0

PDF downloads

0

Outbound clicks

1

Citations

Views over time

Views by country

Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".

Traffic sources

Referring site, by host.

Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.