Distinctive from prior research that emphasizes the influences of CEO demographic characteristics on corporate financial strategies, this study uses constellation traits as the proxy variables for CEO psychological traits and takes into consideration demographic characteristic variables to further analyze the relationship between CEO traits and corporate financial leverage, performance, and growth opportunity. This is an interesting issue worthy of study because shareholders and potential investors are always searching for CEOs that can create and increase values for the firms. The results show that there is a greater proportion of Leo CEOs in high-leverage firms, a greater proportion of Virgo CEOs in low-leverage and high-ROA firms, and a greater proportion of Pisces CEOs in both low- and high-MB-ratio firms. In addition, the CEOs with air-constellation are positively related to ROA. In general, CEOs with fire- and earth-constellations prefer using debt financing, while CEOs with air-constellation are averse to such. CEOs with fire- and air-constellations are positively related to ROA, while CEOs with earth-constellations are negatively related to ROA. Moreover, cash compensation will reduce the positive effect of air-constellation CEO on ROA.
Hsien-Chang Kuo, Shih Chien University, Taiwan
Lie-Huey Wang, Ming Chuan University, Taiwan
Stream: Qualitative/Quantitative Research in any other area of Psychology
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