The relationship between the five major factors of the CEO's character and the financial variables

Subject Areas : Educational Science

ali taghavi moghaddam ¹ , abolghasem masehabadi ² , mohamadreza shorvarzi ³ , alireza mehrazin ⁴

1 - گروه حسابداری، واحد نیشابور، دانشگاه آزاد اسلامی، نیشابور، ایران
2 - گروه حسابداری، واحد سبزوار، دانشگاه آزاد اسلامی، سبزوار، ایران [e-mail] (نویسنده مسئول)
3 - گروه حسابداری، واحد نیشابور، دانشگاه آزاد اسلامی، نیشابور، ایران
4 - گروه حسابداری، واحد نیشابور، دانشگاه آزاد اسلامی، نیشابور، ایران

Received: 2018-07-11 Accepted : 2018-12-22 Published : 2018-12-11

Keywords: Financial Leverage, profitability variable, sale growth, CEO &prime, s personality,

Abstract :

One foundation of corporate success is to have qualified and efficient managers.. Managers’ qualification depends on their behaviors, personality traits, and views rather than on their knowledge and skills. The present research is in the field of applied research and correlation type. The statistical population of this study is all companies accepted in Tehran Stock Exchange in 2015. A systematic elimination method was used to determine the statistical sample and for the selected companies the questionnaire was sent and 52 companies that responded in the statistical sample of this research were placed. Research hypotheses have been obtained by means of structural equation model with partial least squares test (PLS) method. In order to assess personality traits of CEOs, five - element of NEO was used and financial leverage and profitability variable were selected to conduct the study. The results of this study revealed that there was a positive and significant correlation between personality traits of CEOs and financial leverage, and profitability. Among the personality traits, there is a positive and meaningful relationship between the CEO's extraversion with financial leverage and profitableness and there is a negative and significant relationship between the CEO's Conscientiousness and financial leverage. Also, there is a negative and significant relationship between agreeableness and profitability of positive relationship Openness with profitability.