Exploring the moderating effect of CEO reputable university on sustainable growth strategy and financial performance: evidence from Indonesia

This study examines the impact of Sustainable Growth Strategies (SGS) on firm financial performance, focusing on the moderating role of CEOs with educational backgrounds from reputable universities. Using a sample of 1,659 observations from Indonesian publicly listed companies over the period 2016 to 2023, this study applies Ordinary Least Squares (OLS) regression models as well as robustness tests, including Coarsened Exact Matching (CEM) and Heckman’s Two-Stage Model. The results confirm that SGS positively affects financial performance. CEO Reputable University strengthens this relationship, particularly during the COVID-19 pandemic, highlighting the role of strategic leadership under conditions of uncertainty. Moreover, CEOs with educational backgrounds from reputable universities strengthen this relationship, especially during the COVID-19 pandemic, underscoring the importance of strategic leadership under conditions of heightened uncertainty. The implications of this study strengthen the findings of previous research and extend the theoretical scope of the Resource-Based View (RBV) and Upper Echelon Theory. This research also highlights the role of educational institutions in preparing leaders with a strategic and sustainability-oriented mindset. It contributes to providing new insights for stakeholders and executives on the importance of sustainable growth strategy and leadership quality in improving firm performance.