CEO Personality and Firm Policies

61 Pages Posted: 25 Jul 2016

See all articles by Ian D. Gow

Ian D. Gow

University of Melbourne

Steven N. Kaplan

University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI); University of Chicago - Polsky Center for Entrepreneurship

David F. Larcker

Stanford University - Graduate School of Business

Anastasia Zakolyukina

University of Chicago

Multiple version iconThere are 2 versions of this paper

Date Written: July 2016

Abstract

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.

Suggested Citation

Gow, Ian D. and Kaplan, Steven Neil and Larcker, David F. and Zakolyukina, Anastasia, CEO Personality and Firm Policies (July 2016). NBER Working Paper No. w22435, Available at SSRN: https://ssrn.com/abstract=2813883

Ian D. Gow (Contact Author)

University of Melbourne ( email )

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Steven Neil Kaplan

University of Chicago - Booth School of Business ( email )

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National Bureau of Economic Research (NBER)

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European Corporate Governance Institute (ECGI) ( email )

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University of Chicago - Polsky Center for Entrepreneurship

Chicago, IL 60637
United States

David F. Larcker

Stanford University - Graduate School of Business ( email )

Graduate School of Business
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Stanford, CA 94305-5015
United States
650-725-6159 (Phone)

Anastasia Zakolyukina

University of Chicago

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