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NTU Management Review Vol. 34 No. 2 Aug. 2024

Harrison, Thurgood, Boivie, and Pfarrer, 2019).
From the above discussions, it is evident that among the various attributes of CEOs,
their personality traits have a substantial influence on firm performance. Therefore,
adopting the framework of Costa and McCrae (2000), the primary objective of this study

is to investigate the influence of CEO extraversion on firm performance. In addition, this
study refines its analysis by identifying mechanisms that could moderate the impact of
CEO extraversion on firm performance.

2. Design/Methodology/Approach

This study combines the Five-Factor Personality Model (FFM) with the Open
Language Chief Executive Personality Tool (OLCPT) (Harrison et al., 2019) to assess

CEO personality traits, including extraversion, agreeableness, conscientiousness,
neuroticism, and openness to experience. This OLCPT tool provides a validated and
comprehensive framework for measuring personality traits. Specifically, the OLCPT is
an optimized prediction tool that employs machine learning to simulate the scoring logic

of psychological experts. This tool offers continuous scores for CEO personality traits,
similar to using a spectrum to locate these traits, which enables the measurement of these
five traits.
This study controls for the other four of the Five-Factor model’s personality traits,

namely, agreeableness, conscientiousness, neuroticism, and openness to experience. Firm
performance is measured using Return on Assets (ROA) and Tobin’s Q. Furthermore, this
research extends its exploration by identifying several potential mechanisms, including Top
Management Team (TMT) characteristics, firm equity risk, and market competitiveness.

Regarding the major constructs of TMT characteristics, the study follows Zhang (2019)
by focusing on TMT background homogeneity and shared working experience. It aims to
validate whether these mechanisms exert moderating effects on the relationship between
CEO extraversion and firm performance.

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