From time to time we have written about CEO Personality and its impact on corporate operations and stock returns. Earlier this week we spoke with Dr. Joseph Harrison of TCU. Dr. Harrison and his team recently performed an Advanced Analytics exercise that analyzed 2,880 CEOs regarding their personality traits and related company stock returns. Click … Continue reading Cult of Personality – A Deep Dive On CEO Personality Research
Fraud always spikes during frothy markets. If it feels like we are beating you over the head as it relates to Quality CEOs and CEO Integrity it is because we are. High Quality, High Integrity CEOs are the best preventive measure against getting burned by fraudulent companies. 2020 has delivered massive equity market valuation froth … Continue reading Fraud – A Sign of The Times
CEOs that allow themselves to be ruled by ego and emotion, that need to see their name in news headlines ("Narcissist" CEOs as defined by Stanford Professor Charles O'Reilly), are more likely to take significant risks - including impulsive M&A transactions - at the expense of a thoughtful, long-term operating strategy. Stanford's O'Reilly has done … Continue reading Narcissist CEOs Drive Risky Corporate Behavior
CEOs who scored at the low-end of our Personality Analysis churned at a 46% rate over a two-year period vs. 9% for the peer group. Our CEORater Fintech arm published a CEO Personality Analysis in May 2018 (Access HERE). CEOs who scored at the bottom of that analysis churned at a 46% rate from May … Continue reading Using NLP To Predict CEO Churn
Effective leaders whether they be hired CEOs, entrepreneurs, school teachers or physicians create opportunities through action. Elon Musk did just that this week. We don't often side with Mr. Musk but have been in lockstep with him during this COVID period. Mr. Musk, Tesla (tkr: TSLA), co-founder and CEO recently reopened Tesla's Fremont, CA manufacturing … Continue reading Leaders Create Opportunities
Lost amidst the drama around Jes Staley's ties to convicted (deceased) sex offender Jeffrey Epstein is Staley's poor performance as Barclays CEO. This speaks to Barclays' weak Board of Directors and lack of corporate governance. One need look no further than the numbers. Barclays has under-performed during Staley's tenure. Staley was groomed by JP Morgan … Continue reading Why Does Jes Staley Remain Barclays CEO?
As a follow-up to our November 14th article, we ran a quick supplemental analysis on our 2018 Mid Cap Software CEO Analysis. Although our sample set was considerably smaller, we found evidence to partially support the conclusions of Harrison, Thurgood, Boivie and Pfarrer insofar as the top 2 bullets in the below graphic. We plan … Continue reading More RE: CEO Personality & Implications for Stock Prices
We at CEORater have highlighted the importance of CEO personality in terms of its influence on corporate strategy, operational and financial performance and thereby implications for stock prices. Don't take our word for it, there's plenty of published research from various academic institutions including the work of David Larker and Charles O'Reilly, both of Stanford … Continue reading Cult of CEO Personality & Implications for Stock Prices
One of the services we provide at CEORater includes a CEO Personality Profile derived from Natural Language Processing applied to earnings call transcripts. Research out of Stanford University - Charles OReilly and David Larcker - demonstrates a correlation between CEO Personality and company outcomes. Separate efforts apply similar analytic methods toward evaluating institutional investors. Institutional … Continue reading When Evaluating Institutional Investors Ferraris Are A Red Flag.
We pulled a list of the top CEOs from our CEORater platform as measured by our "CRScore". The CRScore is a crowdsourced score based upon user reviews at CEORater.com. CEOs are scored on a scale of 0-100, 100 being the best. Users "review" CEOs by posting comments, allocating a Thumbs Up or Down, and by … Continue reading CEORater’s Top CEOs