EKSU Journal of the Management Scientists

Effect of CEO’s Gender and Tenure on Financial Distress Likelihood of Listed Nigerian Deposit Money Banks: Moderated by Risk Committee Gender

Abstract

Over the years, the Nigerian banking sector has experienced monetary and fiscal policies’ reformations, in an effort to ensure the growth and survival of banks operations considering their significance to economic development. In spite some of the banks were reported to have been consumed by financial distress. The study therefore examined the moderating role of risk committee gender on the effect of CEO gender and tenure on financial distress likelihood of listed deposit money banks in Nigeria for the periods of fifteen years from 2007-2021. Fourteen listed deposit money banks were considered as the population of this study and census sampling technique was used. Correlational and ex-post facto were employed as research designs. Data were extracted from annual audited financial statement of the sampled banks. Logistic regression technique was used to measure the dependent variable via Multi Discriminant Analysis approach of a modified Althman Z score model. The study revealed that CEO Gender is significantly influencing financial distress positively, while, CEO Tenure has a negative and significant effect on financial distress likelihood of listed deposit money banks in Nigeria. However, the interaction of Risk Committee Gender on the effect of CEO gender, tenure and financial distress likelihood were insignificant as far as the Nigerian listed deposit money banks are concern. The study recommended that, board of the listed deposit money banks must not give priority to female in managing the affairs of banks essentially at the CEO’s position, for the fact that female can be very emotional and do not withstand pressure which makes them less critical in their analytical ability for decision making, which may affect the survival tendency of Nigerian listed deposit money banks. In addition to that, the board should encourage the extension of CEO tenure as they stand to gain more exposure with sound knowledge and experience in making meaningful contribution to the growth and survival of the banks.