CEO Affective States and Firm Performance
Bibliographic Data
| ID | 4389036 |
|---|---|
| Authors | María Alejandra Inostroza-Correa (0000-0003-0756-7352, Pontificia Universidad Católica de Chile), María Alejandra Inostroza Correa (Faculty of Social Sciences, School of Social Work Pontificia Universidad Católica de Chile Santiago Chile), Jorge Sepúlveda‐velásquez (Escuela de Ingeniería Comercial, Facultad de Economía y Negocios Universidad Santo Tomás Chile), Jorge Sepúlveda (0000-0002-5205-1892, Universidad Santo Tomás, corresponding author), Cristian Céspedes‐carreño (Faculty of Education and Social Sciences Universidad Andres Bello Santiago Chile), Cristián Céspedes (0000-0002-6547-3445, Universidad Andres Bello) |
| Year | 2025 |
| Volume | 76 |
| Issue | 260 |
| Pages | 341-354 |
| Publication date | 2025-08-17 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | International Social Science Journal (JOURNAL) |
| Journal identifiers | ISSN: 0020-8701 • E-ISSN: 1468-2451 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/issj.70011 |
| OpenAlex | W4413298946 |
| Language | EN |
| References cited | 85 |
Even though the effect of CEO personality on business aspects like leadership and organizational culture has been studied in small and medium-sized enterprises (SMEs), its effect on performance in emerging economies remains vague in literature. This study seeks to examine the influence of CEOs' affective states on the financial performance of SMEs, specifically within the framework of an emerging economy. A sample of SMEs from Chile in 2017 is analysed. Employing ordinary least squares (OLS), propensity score matching (PSM) and bootstrap regression techniques, we argue that CEOs' negative affective states significantly impair corporate performance. Contrary to predictions, our results show that CEOs' favourable affect varies with financial performance. This difference in impact between positive and negative affective states sheds light on how CEO attributes affect SME performance. Our research illustrates an association between the profitability of SMEs, the individual characteristics of CEOs and their affective states, increasing the empirical evidence on a topic that has been relatively understudied. Our findings would help decision makers, institutions and managers to improve their understanding of the factors that influence the financial profitability of firms and thereby sustain their development over time
Business · Demographic economics · Economics · Political science · Corporate Finance and Governance · Family Business Performance and Succession · Islamic Finance and Banking Studies · Psychology · Social Psychology
Elements of Econometrics
The Oxford Handbook of Positive Psychology
On the role of positive and negative affectivity in job performance
The Influence of Relational Demography and Guanxi
CEO Personality, Strategic Flexibility, and Firm Performance
Upper Echelons
CEO proactiveness, innovation, and firm performance
Development and validation of brief measures of positive and negative affect
| Citation velocity | historical |
|---|---|
| Highly cited | No |