The Moderating Role of Board Independence in the Relationship Between CEO Tenure and Firm Performance in the Gulf Cooperation Council Countries

Authors

  • Ahlam Mohammed Alrizgan School of Business and Economics, University Putra Malaysia & Faculty of College of Business and Economics, Qassim University
  • Asna Abdullah Atqa School of Business and Economics, University of Putra Malaysia, Malaysia
  • Siti Manisah Ngalim School of Business and Economics, University of Putra Malaysia, Malaysia

DOI:

https://doi.org/10.14738/assrj.1209.19430

Keywords:

CEO tenure, Firm performance, Board independence, Corporate governance, GCC

Abstract

This study examines the influence of CEO tenure on firm performance. It also investigates the moderating effect of board independence. The sample comprises publicly listed firms in the Gulf Cooperation Council Countries (GCC) stock markets over the period 2014–2023, and the analysis employs panel data techniques to test the proposed relationships. The empirical findings show that CEO tenure is positively and significantly associated with accounting-based performance (ROA), while no statistically significant relationship is found with market-based performance (Tobin’s Q). Robustness checks using ROE confirm the positive effect of tenure on accounting outcomes. The moderating role of board independence is evident in the case of ROA, where increased oversight diminishes the benefits of longer CEO tenure. For Tobin’s Q, however, the moderating effect of board independence is negative but not statistically significant. This study contributes evidence from an emerging-market environment by distinguishing between accounting and market results and by documenting the moderating role of board independence.

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Published

2025-09-26

How to Cite

Alrizgan, A. M., Atqa, A. A., & Ngalim, S. M. (2025). The Moderating Role of Board Independence in the Relationship Between CEO Tenure and Firm Performance in the Gulf Cooperation Council Countries. Advances in Social Sciences Research Journal, 12(09), 187–203. https://doi.org/10.14738/assrj.1209.19430

Issue

Vol. 12 No. 09 (2025): Advances in Social Sciences Research Journal

Section

Articles

License

Copyright (c) 2025 Ahlam Mohammed Alrizgan, Asna Abdullah Atqa, Siti Manisah Ngalim

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