Psychology of Public Market Company CEOs

 

This is a study of the executives of publicly listed North American companies. Every quarter, following the release of their interim financial results, the top executives of public companies host a recorded earnings call in order to provide their shareholders and the analyst who cover their stock, a detailed discussion of their results.

 

These earnings calls are high stakes sessions. They are roughly 60 minutes in duration and are organized into two sections. During the first 30 minutes or so, the executive team recites prepared remarks describing their quarter. During the second 30 or so minutes, analysts engage in a Q&A session with the management team. We used the Receptiviti API to score the Q&A section of the call. We have done this for approximately 3,000 companies, each quarter, for the past 10 years. The data was obtained from FINNHUB.

To provide a sense of the insights you can obtain from Receptiviti, we have include two studies:

 

The first is a study of how the psychology of CEO's change during their tenure. Being a CEO is a challenging job, with lots of stress and pressure, and not surprisingly, the psychology of this population of CEO's changes quite remarkably during their tenure. Their cognitive load increases (cognitive_processes), their executive functioning decreases (analytical_thinking), they become more cautious (Cautious), they are less driven by affiliation and more drive by power.

 

The second study tests whether CEO and CFO psychology effects performance. For this study we provide you with the ability to build some custom models using our measures and then apply those measures to the construction of a long/short portfolio strategy.

The studies are interactive, and you can can navigate the companies and measures using the menu at the left below. If you have any questions please contact us at sales@receptiviti.com.

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30-years ago we invented the science of language and personality, called LIWC, and we've been perfecting it ever since. Our science is validated, has over 19,000 citations on Google Scholar, and we are continually expanding its capabilities through our collaborative relationships with some of the most acclaimed researchers in the domain from the University of Toronto, the University of Texas, University of Arizona.

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