Title: CEO characteristics and CEO's power and their impact on earnings per share: the moderating role of the political connection

Authors: Khaldoon Ahmad Aldaoud; Dea'a Al-Deen Al-Sraheen

Addresses: Faculty of Business, Department of Accounting, Yarmouk University, P.O. 21163, Irbid, Jordan ' School of Business, Accounting Department, Al Al-Bayt University, P.O. 25113, Al Mafraq, Jordan

Abstract: The Chief Executive Officer (CEO) has been deemed one of the essential governance mechanisms that play a key role in guiding the company's strategies. This paper examined whether CEO political connections are relevant to the relationship between CEO power and earnings per share (EPS). The study also investigated the influence of CEO narcissism, tenure, and duality on (EPS). The sample data comprised a panel dataset of 392 firm-year observations from Jordanian-listed companies from 2014 to 2020. The three CEO characteristics were used as a composite index of CEO power, which was a vital contribution to this study. The study found that CEO narcissism, duality, and power positively and significantly impacted EPS, while tenure had an insignificant negative influence on EPS. CEO political connections positively moderated the relationship between CEO power and EPS. The paper contributed to the literature by examining the impact of CEO narcissism and political connections on EPS.

Keywords: CEO narcissism; CEO tenure; CEO duality; CEO power; EPS; earnings per share; Jordan.

DOI: 10.1504/IJTGM.2023.136123

International Journal of Trade and Global Markets, 2023 Vol.18 No.4, pp.385 - 406

Accepted: 24 Jul 2022
Published online: 17 Jan 2024 *

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