CEO extraversion and the cost of equity capital

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NETL
NSTL
Wiley

外文摘要：We examine whether CEO extraversion, an important personality trait associated with leadership, is associated with firms' expected cost of equity capital. We measure CEO extraversion using CEOs' speech patterns during the unscripted portion of conference calls. After controlling for multiple CEO and firm‐specific variables, we find a strong positive incremental association between CEO extraversion and firms' expected cost of capital. Moreover, cost of equity increases when a more extraverted CEO replaces a less extraverted CEO. In addition, we find that firms with relatively extraverted CEOs take more risk and exhibit lower credit ratings, which is associated with higher cost of equity capital. These results are statistically and economi- cally meaningful and do not appear to be driven by reverse causality, endogenous matching, look‐ahead bias, or bias in analysts' earnings forecast.

作者：

Biljana Adebambo、Robert M. Bowen、Shavin Malhotra、Pengcheng Zhu

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作者单位：

Knauss School of Business,University of San Diego,San Diego,California,USA

The George L.Argyros College of Business& Economics,Chapman University,Orange, California,USA||Foster School of Business,University of Washington,Seattle,Washington,USA

Conrad School of Entrepreneurship and Business,University of Waterloo,Ontario, Canada

出版年：

2024

DOI：

10.1111/jfir.12389

The journal of financial research

ISSN：0270-2592

年,卷(期)：2024.47(4)

参考文献量117