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

29 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

Access to Document

10.1080/15427560.2017.1338704

Cite this

@article{713567a1eb4f4d48b29bed3125bd9313,

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.",

keywords = "Affect, CEO, Corporate governance, Emotion recognition, Emotions, Facial recognition, Firm performance, Moods, Nonverbal information, Soft information",

author = "Ali Akansu and James Cicon and Ferris, \{Stephen P.\} and Yanjia Sun",

note = "Publisher Copyright: {\textcopyright} 2017 The Institute of Behavioral Finance.",

year = "2017",

month = oct,

day = "2",

doi = "10.1080/15427560.2017.1338704",

language = "English (US)",

volume = "18",

pages = "373--389",

journal = "Journal of Behavioral Finance",

issn = "1542-7560",

publisher = "Taylor and Francis Ltd.",

number = "4",

}

TY - JOUR

T1 - Firm Performance in the Face of Fear

T2 - How CEO Moods Affect Firm Performance

AU - Akansu, Ali

AU - Cicon, James

AU - Ferris, Stephen P.

AU - Sun, Yanjia

PY - 2017/10/2

Y1 - 2017/10/2

N2 - 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.

AB - 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.

KW - Affect

KW - CEO

KW - Corporate governance

KW - Emotion recognition

KW - Emotions

KW - Facial recognition

KW - Firm performance

KW - Moods

KW - Nonverbal information

KW - Soft information

UR - https://www.scopus.com/pages/publications/85021204620

UR - https://www.scopus.com/pages/publications/85021204620#tab=citedBy

U2 - 10.1080/15427560.2017.1338704

DO - 10.1080/15427560.2017.1338704

M3 - Article

AN - SCOPUS:85021204620

SN - 1542-7560

VL - 18

SP - 373

EP - 389

JO - Journal of Behavioral Finance

JF - Journal of Behavioral Finance

IS - 4

ER -

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

Abstract

All Science Journal Classification (ASJC) codes

Keywords

Access to Document

Other files and links

Fingerprint

Cite this