Do hubristic managers really matter on performance? Evidence from listed firms in Nigeria

Ayobolawole Adewale Ogundipe (Tasmanian School of Business and Economics, University of Tasmania, Tasmania, Australia)
Abiodun Rafiat Ayeni-Agbaje (Department of Accounting, Ekiti State University, Nigeria)
Opeyemi Roselyn Akindutire

The Indonesian Journal of Accounting Research
Vol 23, No 3 (2020): IJAR September 2020

This study examined whether or not hubristic managers affect the performance of listed firms in Nigeria for the period of 2007-2017. Based on Fixed panel estimator, our study reveals that determinants of hubristic managers such as age, tenure, ownership and political appointment are adversely affecting the performance of listed firms in the country, while business climate, size of the firm and earnings deviation are mixed indicators of listed firms’ performance in Nigeria. We propose that the regulating agencies of government in charge of listed firms should reduce the age bracket of CEOs in the country, percentage of shares owned by CEOs in the country should be reduced. Also, firms should not be allowed to make people with political connections or those who are once or presently in a political office a CEO because of its adverse effect on the performance of listed firm in the country.