Firm Performance in the Face of Fear: How CEO Moods Affect Firm Performance

Document Type

Article

Publication Date

10-2-2017

Abstract

The authors use facial emotion recognition software to quantify CEO mood. Anger or disgust motivates a CEO to work harder to improve his or her situation; thus firm profitability improves in the subsequent quarter. Happy CEOs are less likely to work on hard or unpleasant tasks; thus profitability decreases in the subsequent quarter. In the short term, fear explains the firm's announcement period market performance. However, fear is transient and performance improvement is short term.

Identifier

85021204620 (Scopus)

Publication Title

Journal of Behavioral Finance

External Full Text Location

https://doi.org/10.1080/15427560.2017.1338704

e-ISSN

15427579

ISSN

15427560

First Page

373

Last Page

389

Issue

4

Volume

18

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