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Abstract
The business environment, particularly in NSE-listed firms, is dynamic and highly competitive, where innovation, especially financial innovation, is crucial for survival. While previous studies have emphasized the importance of board leadership in fostering innovation, the moderating role of CEO demographics in the context of Kenya’s NSE-listed firms remains underexplored. This study aimed to fill this gap by investigating whether CEO characteristics—specifically age, gender, education, and tenure—moderate the relationship between board leadership and sustainability reporting. Using an explanatory research design, data was collected from 59 NSE-listed firms, with secondary sources such as annual reports, sustainability disclosures, and corporate governance reports providing the necessary information. Hierarchical regression analysis was employed to explore the relationships between CEO demographics, foreign ownership, and sustainability reporting. The findings revealed that CEO age (β = -0.0138, p = 0.002) had a significant negative effect on sustainability reporting, suggesting that older CEOs may be more conservative in their approach to sustainability. Similarly, CEO education (β = 0.0096, p = 0.824) did not show a significant impact on sustainability practices, which could imply that education alone does not necessarily drive sustainability reporting. However, CEO gender (β = 0.2809, p = 0.000) was found to have a significant positive effect on sustainability reporting, indicating that firms led by female CEOs tend to engage in more extensive sustainability disclosures. On the other hand, CEO tenure (β = 0.0008, p = 0.875) was not a significant predictor of sustainability reporting, suggesting that the length of a CEO's service does not correlate with sustainability practices in this context. Furthermore, foreign ownership played a significant moderating role in the relationship between CEO age and sustainability reporting, with a significant interaction effect (β = 0.0241, p = 0.007), implying that firms with higher foreign ownership benefit from the experience of older CEOs in promoting sustainability. The moderating effect was also significant for CEO gender (β = -0.4228, p = 0.003) and CEO education (β = 0.1934, p = 0.019), suggesting that foreign ownership amplifies the positive impact of these CEO characteristics on sustainability practices. However, foreign ownership did not significantly moderate the relationship between CEO tenure and sustainability reporting (β = 0.0131, p = 0.151). These results underscore that CEO demographics, particularly age, gender, and education, play crucial roles in shaping sustainability reporting in NSE-listed firms, with foreign ownership acting as a significant moderator in this process. The study highlights the importance of considering both CEO characteristics and the moderating effect of foreign ownership when examining sustainability practices within Kenyan financial institutions.
Keywords:
CEO demographics; sustainability reporting; foreign ownership; corporate governance; Nairobi Securities Exchange; Kenya
Cite Article:
"Influence of CEO Demographics on Sustainability Reporting in Kenyan Listed Companies: The Moderating Role of Foreign Ownership", International Journal for Research Trends and Innovation (www.ijrti.org), ISSN:2456-3315, Vol.11, Issue 6, page no.a807-a820, June-2026, Available :http://www.ijrti.org/papers/IJRTI2606082.pdf
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ISSN:
2456-3315 | IMPACT FACTOR: 8.14 Calculated By Google Scholar| ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.14 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator