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
Suggested Citation: Suggested Citation
Gow, Ian D. and Kaplan, Steven N. and Larcker, David F. and Zakolyukina, Anastasia A., CEO Personality and Firm Policies (July 6, 2016). 6th Miami Behavioral Finance Conference; Stanford University Graduate School of Business Research Paper No. 16-34; Chicago Booth Research Paper No. 16-13; Fama-Miller Working Paper; Rock Center for Corporate Governance at Stanford University Working Paper No. 220. Available at SSRN: https://ssrn.com/abstract=2805635