Managerial attitudes and corporate actions

Journal Article (Journal Article)

We administer psychometric tests to senior executives to obtain evidence on their underlying psychological traits and attitudes. We find US CEOs differ significantly from non-US CEOs in terms of their underlying attitudes. In addition, we find that CEOs are significantly more optimistic and risk-tolerant than the lay population. We provide evidence that CEOs' behavioral traits such as optimism and managerial risk-aversion are related to corporate financial policies. Further, we provide new empirical evidence that CEO traits such as risk-aversion and time preference are related to their compensation. © 2013 Elsevier B.V.

Full Text

Duke Authors

Cited Authors

  • Graham, JR; Harvey, CR; Puri, M

Published Date

  • July 1, 2013

Published In

Volume / Issue

  • 109 / 1

Start / End Page

  • 103 - 121

International Standard Serial Number (ISSN)

  • 0304-405X

Digital Object Identifier (DOI)

  • 10.1016/j.jfineco.2013.01.010

Citation Source

  • Scopus