Does CEO Extraversion Pay Off When in Need? Evidence From the Global Financial Crisis
Date
Supervisor
Item type
Journal Article
Degree name
Journal Title
Journal ISSN
Volume Title
Publisher
Elsevier BV
Abstract
We examine the effect of CEO extraversion on corporate performance during the Global Financial Crisis (GFC). Contrary to the expectation that extraverted CEOs should shield firms better from GFC adversities, we document that the extraversion characteristic of CEOs places a significant, though negative, effect on corporate performance during the financial crisis. Our findings are robust to controlling for other CEO personality traits. We also perform a battery of robustness tests and validate the underperformance of firms with extraverted CEOs during the GFC using stock returns and measures of operating performance. We argue that because extraverted CEOs are associated with heightened firm risk profile, this can hurt firms when the market disciplines excessive risk-taking during the crisis.Description
Keywords
3501 Accounting, Auditing and Accountability, 3502 Banking, Finance and Investment, 35 Commerce, Management, Tourism and Services, 3507 Strategy, Management and Organisational Behaviour, 1501 Accounting, Auditing and Accountability, Accounting, 3501 Accounting, auditing and accountability, 3502 Banking, finance and investment
Source
The British Accounting Review, ISSN: 0890-8389 (Print); 1095-8347 (Online), Elsevier BV, 101234-101234. doi: 10.1016/j.bar.2023.101234
Publisher's version
Rights statement
© 2023 The Authors. Published by Elsevier Ltd on behalf of British Accounting Association. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).