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

Ali Akansu; James Cicon; Stephen P. Ferris; Yanjia Sun

doi:10.1080/15427560.2017.1338704

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

Ali Akansu, James Cicon, Stephen P. Ferris, Yanjia Sun

Electrical and Computer Engineering

Research output: Contribution to journal › Article › peer-review

25 Scopus citations

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.

Original language	English (US)
Pages (from-to)	373-389
Number of pages	17
Journal	Journal of Behavioral Finance
Volume	18
Issue number	4
DOIs	https://doi.org/10.1080/15427560.2017.1338704
State	Published - Oct 2 2017

All Science Journal Classification (ASJC) codes

Experimental and Cognitive Psychology
Finance

Keywords

Affect
CEO
Corporate governance
Emotion recognition
Emotions
Facial recognition
Firm performance
Moods
Nonverbal information
Soft information

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10.1080/15427560.2017.1338704

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title = "Firm Performance in the Face of Fear: How CEO Moods Affect Firm Performance",

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.",

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KW - Nonverbal information

KW - Soft information

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

Abstract

All Science Journal Classification (ASJC) codes

Keywords

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