Don’t Worry, Be Happy—Does the CEO’s Personality Mitigate the Negative Effect of Financial Constraints on Employee Satisfaction?

Laura Neumeyer (), Anna Gründler () and Anna-Luisa Stöber ()
Additional contact information
Laura Neumeyer: Heinrich-Heine-University Düsseldorf
Anna Gründler: Heinrich-Heine-University Düsseldorf
Anna-Luisa Stöber: Macromedia University of Applied Sciences

Schmalenbach Journal of Business Research, 2023, vol. 75, issue 1, 71-98

Abstract: Abstract Our study addresses whether a chief executive officer’s (CEO) personality can mitigate financial constraints’ negative effect on employee satisfaction. We draw on extant research that establishes this negative effect but add an upper echelon’s perspective by examining the potential influence of the CEO’s personality traits. Using a multi-source dataset of 1516 observations of S&P 500 firms, novel measures of employee satisfaction based on Glassdoor reviews, and a machine-learning-based linguistic tool on the Five-Factor Model’s personality traits, our study reveals that a CEO who has a high level of openness to experience and/or a low level of conscientiousness buffers the negative impact of financial constraints on employee satisfaction. Theoretical and practical implications are discussed.

Keywords: Financial constraint; Employee satisfaction; CEO personality; Five-Factor Model; Upper echelons theory (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s41471-022-00153-9 Abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sjobre:v:75:y:2023:i:1:d:10.1007_s41471-022-00153-9

Ordering information: This journal article can be ordered from
https://www.springer.com/journal/41471

DOI: 10.1007/s41471-022-00153-9

Access Statistics for this article

More articles in Schmalenbach Journal of Business Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().