Abstract: Executive personality is increasingly recognized as an important determinant of firm behaviors and outcomes. Despite the abundance of research on executive personality in the upper echelons, little is understood about the implications of an executive having a sense of humor. In this study, I draw on reversal theory, a theory of personality, and investigate how CEO sense of humor influences two important firm outcomes: organizational innovation and analyst ratings. I argue that CEO sense of humor has positive implications for both organizational innovation and analyst ratings. I also describe preliminary plans for empirical tests of these arguments.

Abstract: In this paper, we consider how a well-known personality trait – extraversion-introversion – could influence CEO behavior, and ensuing strategic decisions of the firm. Extraverted CEOs are more optimistic, bold, forceful, self-confident and spontaneous than their introverted colleagues. Using a novel technique to gauge personality of a large sample of CEOs, this study reveals that this personality trait has important bearing on firms and their corporate direction. Specifically, we find that extraverted CEOs are more likely to engage in acquisitions, conduct more acquisitions, and conduct larger and more unrelated acquisitions. Moreover, we find that the acquisitive nature of extraverted CEOs reveals itself particularly in situations when there is less of an external drive for doing M&As – i.e., conditions of relatively low competitive rivalry and low velocity.

Abstract: Literature on CEO career horizon suggests that except for family firms, near-retirement CEOs’ behaviors are normative and characterized by diminishing firms’ long-term engagements. We argue that this may not always be true because the few years before retirement are the last period when CEOs still have substantial impact on the last firm to which their identity, reputation, and wealth attach. Thus, what they most value and wish to leave behind should affect their decision-making. What they value, however, should be influenced by their characteristics and social contexts through cognitive processes. We investigate this hypothesis on S&P1500 firms during 1999-2010. Our findings suggest that CEO characteristics and social contexts can alter the positive relationship between CEO career horizon and long-term investments predicted by current literature.

Abstract: Organizations adapt their aspirations based on feedback. If performance feedback falls below aspirations, organizations take greater risks and are more likely to engage in innovative strategies than if performance feedback is above aspirations. While such systematic differences above and below aspirations have been recognized, individual psychological differences in feedback interpretation have not been addressed in this literature. This is surprising, because individual psychological differences can explain heterogeneity in firm behavior. To address this promising area within adaptive aspirations and feedback theory, we focus on one particular process in aspiration adaptation: Regulatory focus (i.e., promotion and prevention focus). Our results from a longitudinal study of the worldwide publishing industry show how regulatory focus influences aspiration adaptation and innovative strategies.