CEO Personality and Firm Policies
62 Pages Posted: 8 Jul 2016 Last revised: 10 Aug 2016
Date Written: July 6, 2016
Based on two samples of high quality personality data for chief executive officers (CEOs), we use linguistic features extracted from conferences calls and statistical learning techniques to develop a measure of CEO personality in terms of the Big Five traits: agreeableness, conscientiousness, extraversion, neuroticism, and openness to experience. These personality measures have strong out-of-sample predictive performance and are stable over time. Our measures of the Big Five personality traits are associated with financing choices, investment choices and firm operating performance.
Keywords: CEO Personality, leadership traits, personality measures, Big Five personality, CEO investment choices, CEO financing choices, firm operating performance
JEL Classification: G30, G34, G02
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