Personality Traits Of Entrepreneurs And Risk Preference Of Firms

The relationship between company executives personal characteristics and corporate financial behavior is a hot research topic in the recent domestic and foreign corporate finance sector.Predecessors were made many highly instructive exploration&research,hade a very rich results.In recent years,with the big five personality theory of continuous improvement and development of behavioral finance,domestic and foreign scholars have also begun to focus on the relationship between CEO personal traits and corporate decision-making behavior.Foreign scholars use the interests of CEO,such as airLiqaft driving,group sports,as an alternative variable of CEO characteristics,to study the relationship between CEO and corporate financial behavior.The study found a positive correlation bewteen CEO extraversion trait and financial leverage ratio,R&D expenditure and foreign investment and so on.In this context,this paper will refer to the methods and ideas of foreign scholars,study the relationship between extraversion trait and chairman of listed companies on the company’s risk preference.In consideration of our country through the questionnaire method to collect the information of chairman personal characteristics is difficult,therefore,in this paper,we based on the psychological research,extract the traces on the social media(Sina Micro-blog)of the chairman of listed company,to capture the extraversion trait of chairman of listed companies.then study the influence of the listed company’s chairman extroversion personality on the company’s risk preference.In this paper,we use three indicators to characterize the extraversion of chairman of listed companies,that is,whether to open Sina micro-blog and certification,Sina micro-blog activity and the content of Sina micro-blog.The results show that the stronger the extraversion of the chairman,the greater the risk preference of the listed companies.Specifically,the stronger the extraversion of chairman of listed companies,the lower the liquidity ratio,the higher the asset liability ratio,the larger the scale of investment.The main contribution of this paper lies in:first,this paper from a new perspective to research the influence of the personal traits of chairman of listed companies on the listed company’s risk preference,by using of social media to capture the traces of his personality;secondly,to introduce the big five personality theory into the field of corporate finance,this also enrich the research in the field of behavioral finance.