The influence of CEO overconfidence, female director, and CEO duality on the financial performance of industrial sector companies: A strategic outlook

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Abstract

Financial performance is another requirement for companies to maintain their image, and good financial performance is the key to the company’s standing. Financial performance is influenced by factors such as leadership from the director or chief executive officer (CEO). This study aims to obtain empirical evidence regarding the influence of CEO overconfidence, female directors, and CEO duality on financial performance. The companies studied are industrial companies listed on the Indonesia Stock Exchange (IDX) from 2015 to 2021. This research uses quantitative data collected from annual reports published by the companies. The sampling technique used is purposive sampling, based on criteria relevant to the research needs. The data analysis technique used is multiple linear regression. The results of the study explain that CEO overconfidence and female directors influence financial performance, while CEO duality has no effect on the company’s financial performance. Gender issues have not yet been included in previous CEO antecedent-based research on financial performance. This is the new finding from our study. In our research model, we included antecedents for female directors.

Keywords: CEO Overconfidence, Female Director, CEO Duality, Financial Performance, Industrial Company

Authors’ individual contribution: Conceptualization — A.S.L.L., T.A., and H.G.W.; Methodology — B.L.H.; Software — B.L.H.; Validation — T.A. and H.G.W.; Formal Analysis — A.S.L.L.; Investigation — O.R.; Writing — Original Draft — T.A. and H.G.W.; Writing — Review & Editing — A.S.L.L. and B.L.H.; Visualization — B.L.H. and T.A.; Supervision — A.S.L.L. and O.R.; Project Administration — A.S.L.L. and T.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G19, G20, G30

Received: 26.10.2023
Accepted: 06.01.2025
Published online: 09.01.2025

How to cite this paper: Lindawati, A. S. L., Handoko, B. L., Andrian, T., Wijaya, H. G., & Rombot, O. (2025). The influence of CEO overconfidence, female director, and CEO duality on the financial performance of industrial sector companies: A strategic outlook. Corporate & Business Strategy Review, 6(1), 64–74. https://doi.org/10.22495/cbsrv6i1art6