Gradusate School of Business
Knight Management Center
655 Knight Way
Stanford, CA 94305
NBER Working Papers and Publications
|July 2016||CEO Personality and Firm Policies|
with Ian D. Gow, Steven N. Kaplan, Anastasia A. Zakolyukina: w22435
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.