CEO Characteristics, Whistle Blowing Policy and Financial Distress of Listed Financial Service Companies in Nigeria

Abstract

The aim of this study is to examine the interaction of whistle blowing policy on the relationship between chief executive officers’ characteristics and financial distress of listed financial service companies in Nigeria. Empirical studies were reviewed to scrutinize the effect of chief executive officers’ characteristics in relation to the financial distress of companies. In view of the foregoing, this study introduces whistle blowing policy as a moderator variable to interact between chief executive officers’ characteristics with financial distress of listed financial service companies Nigeria. A correlational and ex-post facto research designs were adopted. Population and sample size of the study consists of 49 listed financial service companies on the floor of Nigeria Exchange Group for the period 2008 to 2023. A multiple regression was employed using panel corrected standard error (PCSE). The result shows that Whistle Blowing Policy (WBP) moderated the correlation involving CEO founder, CEO legal knowledge and CEO academic qualification with a negative and statistically significant influence on financial distress of listed financial service companies in Nigeria. However, the direct relationship result found that involving CEO founder, CEO legal knowledge and CEO academic qualification revealed a positive and statistically significant effect on financial distress of listed financial service companies in Nigeria. The study recommends that regulatory authorities should maintain involving CEO founder, CEO legal knowledge and CEO academic qualification with significant performance and adequate experience in the financial sector as well as good knowledge of their respective professions. Research in future should consider other attributes of CEO like education and shareholding.