The effect of CEO extraversion on private debt

Zongjun Wang, Peng Wang, Yao Du and Chih-Yung Lin

Finance Research Letters, 2025, vol. 76, issue C

Abstract: We examine the effect of CEO extraversion on the cost of private debt. We hand-collect each daily tweet from S&P 1500 CEOs and utilize IBM Watson Personality to study their personalities. We find that extraversion in CEOs is related to risk-taking and leadership, which actuates firms to obtain benefits from their loan contracts. Particularly, these firms are more likely to encounter lower loan costs and longer loan maturities than other firms. Thus, firms managed by extraverts help to reduce the cost of bank loans.

Keywords: Private debt; CEO extraversion; IBM Watson Personality; loan cost (search for similar items in EconPapers)
JEL-codes: G12 G30 G32 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:76:y:2025:i:c:s1544612325002260

DOI: 10.1016/j.frl.2025.106962

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