Portal de Periódicos da CAPES

Managerial attitudes and corporate actions

2013; Elsevier BV; Volume: 109; Issue: 1 Linguagem: Inglês

10.1016/j.jfineco.2013.01.010

1879-2774

John R. Graham, Campbell R. Harvey, Manju Puri,

Risk Management in Financial Firms

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.