Growing Pains or Confidence? CEO Relative Age, Stress, and Firm Performance
Growing Pains or Confidence? CEO Relative Age, Stress, and Firm Performance
dc.contributor.author | Cao, Sean | |
dc.contributor.author | Shu, Tao | |
dc.contributor.author | Wang, Jasmine | |
dc.contributor.author | Wu, Qinxi | |
dc.date.accessioned | 2022-10-20T19:39:26Z | |
dc.date.available | 2022-10-20T19:39:26Z | |
dc.date.issued | 2022 | |
dc.description.abstract | CEOs face tremendous stress at work. Motivated by the psychological literature that self-efficacy helps people overcome stress, we examine if the self-efficacy of CEOs alleviates their stress and improves their firms’ performance. Using CEOs’ relative age, i.e., age in kindergarten due to state-level eligibility cutoff date, as a proxy for the CEOs’ self-efficacy, we find that CEOs with higher self-efficacy generate better firm performance, especially in high-stress situations such as industry downturn, expansion into a new sector, mergers and acquisitions, and innovation. While existing literature documents negative impacts of CEO overconfidence, our findings suggest that the confidence of CEOs can be beneficial to their firms. | |
dc.identifier.uri | https://hdl.handle.net/10125/103984 | |
dc.subject | Relative age | |
dc.subject | Self-efficacy | |
dc.subject | CEO stress | |
dc.subject | Firm performance | |
dc.subject | Corporate investment | |
dc.subject | Corporate innovation | |
dc.title | Growing Pains or Confidence? CEO Relative Age, Stress, and Firm Performance |
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