CEO Personality Traits and Corporate Environmental Performance

This study examines how chief executive officers’ “Big Five personality traits” (FFM)- conscientiousness, extraversion, agreeableness, openness to experience, and emotional stability - affect corporate environmental performance (CEP). Drawing from upper echelon perspective (UE) and natural-resource-based view (NRBV) of the firm, we argue that FFM traits of CEOs are associated with CEP. Using a sample of 304 CEOs of 276 S&P 1500 firms, we found that CEO conscientiousness, extraversion, and openness to experience are positively related to CEP. We used a novel technique based on linguistic analysis developed by IBM to assess the FFM traits of CEOs. Our study advances the microfoundations of CEP and UE research.