CEO Background and Company Performance – Evidence from the Cohesion Regions of Eastern and Western Slovenia

  • Renata Gabršek Kapitalska družba d.d.
  • Marko Ferjan University of Maribor, Faculty of Organizational Sciences
  • Iztok Podbregar University of Maribor, Faculty of Organizational Sciences
  • Olja Arsenijević University Nikola Tesla, Faculty for business studies and law
  • Polona Šprajc University of Maribor, Faculty of Organizational Studies
Keywords: Eastern and Western Slovenia, CEO background, firm performance, cohesion regions, Slovenia


The purpose of the study was to determine whether or not a CEO’s background (i.e. age, field and level of education and length of tenure in top management positions) affects a company’s performance (in terms of net return on assets) and, if so, what, if any, are the differences between the two cohesion regions in Slovenia, i.e. Eastern and Western Slovenia. The sample included 109 managers that manage companies in all statistical regions and various areas of activity. The study failed to confirm a connection between a CEO’s background and company performance with regard to the Eastern and Western cohesion regions. However, we have been able to confirm that companies’ performance indicators in the Eastern cohesion region are significantly lower than those of companies in the Western cohesion region. The reason for this may be traced to the companies’ areas of activity and their differences between the regions, where one can claim that specific areas of activity constitute an industry in the individual region.


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