CEO Personality and Firm Policies

61 Pages Posted: 25 Jul 2016 Last revised: 21 Apr 2023

See all articles by Ian D. Gow

Ian D. Gow

University of Melbourne - Department of Accounting

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 Graduate School of Business; Stanford University - Hoover Institution; European Corporate Governance Institute (ECGI)

Anastasia A. Zakolyukina

University of Chicago - Booth School of Business

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 A., 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 - Department of Accounting ( email )

Victoria
Melbourne, Victoria 3010 3010
Australia

Steven Neil Kaplan

University of Chicago - Booth School of Business ( email )

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Chicago, IL 60637
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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 Graduate School of Business ( email )

Graduate School of Business
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Stanford, CA 94305-5015
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Stanford University - Hoover Institution ( email )

Stanford, CA 94305
United States

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

Anastasia A. Zakolyukina

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773.834.4838 (Phone)
773.926.0941 (Fax)

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