CHIEF EXECUTIVE OFFICER’S ATTRIBUTES AND FIRM VALUE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA - MODERATING ROLE OF DIVIDEND PAYOUT RATIO

Abstract

The inconsistent findings on how CEO financial expertise and gender influence firm value in
Nigerian banks have created uncertainty regarding the effectiveness of leadership attributes
in driving market performance. Therefore, this study investigates the effect of CEO financial
expertise and gender on the value of listed Deposit Money Banks (DMBs) in Nigeria, with
dividend payout ratio serving as a moderating variable. Adopting a causal-comparative (ex
post facto) research design, the study examined a sample of 13 banks purposively selected
from a population of 14 listed DMBs as at 31st December 2024. Secondary data were
obtained from audited annual reports and accounts of the selected banks covering the period
2014–2024, which spans the 2016 and 2020 economic recessions in Nigeria. Panel least
squares regression analysis was employed using Stata 17 due to its effectiveness in handling
variability, collinearity, and dynamic individual effects. The findings reveal that CEO gender
has a positive but statistically insignificant direct effect on bank value, implying that gender
diversity contributes only marginally to firm value in the Nigerian banking sector. Similarly,
CEO financial expertise shows a negative and insignificant effect, indicating that technical
financial competence alone does not automatically enhance firm value. However, the study
finds that the influence of these CEO attributes becomes more meaningful when aligned with
dividend payout decisions. The study concludes that dividend policy plays a critical
moderating role in translating leadership attributes into value creation. It therefore
recommends that boards of Nigerian banks strategically align CEO expertise with
investment and dividend decisions to optimize firm value. Regulatory authorities, including
the Central Bank of Nigeria and the Nigerian Exchange Group (NGX), should continue to
promote gender inclusion in executive leadership, while banks should adopt balanced
dividend policies that sustain investor confidence and long-term growth.