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dc.contributor Cook, Douglas O.
dc.contributor Mobbs, Houston Shawn
dc.contributor Jindapon, Paan
dc.contributor Kacmar, K. Michele
dc.contributor.advisor McLeod, Robert W. Mills, Jackson 2017-04-26T14:23:07Z 2017-04-26T14:23:07Z 2015
dc.identifier.other u0015_0000001_0001935
dc.identifier.other Mills_alatus_0004D_12464
dc.description Electronic Thesis or Dissertation
dc.description.abstract This dissertation is composed of two essays that examine the feedback between firm financial characteristics and CEO behavioral tendencies. The first essay examines the relationship between CEOs’ facial width-to-height ratios (fWHR) and firms’ financial policies. Greater facial width is considered to be a masculine physical trait and has been linked to increased aggressive behavior and greater risk tolerance. I find that high-fWHR CEOs pursue more aggressive financial policies, including increased leverage and reduced cash holdings. Additionally, I find that high-fWHR CEOs tend to maintain smaller ownership shares of their firms, suggesting that these CEOs place relatively lower importance on signaling alignment with shareholders. I also show that acquisition attempts led by high-fWHR CEOs are more likely to be unsuccessful. Despite that these managerial characteristics in high-fWHR CEOs are not offset by greater profitability, I find that high-fWHR CEOs do not face a greater risk of forced turnover. In the second essay, I examine CEOs’ option-exercise decisions. The retention of deep in-the-money stock options has been ascribed to managers’ overconfidence in their ability to increase firm value. I find that this behavior is predicted by non-private firm financial information and macroeconomic conditions. Specifically, managers are more likely to retain deep in-the-money stock options when their firms are more profitable, less financially constrained, and have greater growth opportunities. This behavior is also more frequently exhibited during periods of macroeconomic expansion. Given its apparent reactionary nature, this behavior seems to be a reflection of managers’ optimism regarding the near-term financial prospects of their firms and is not necessarily attributable to managerial overconfidence.
dc.format.extent 103 p.
dc.format.medium electronic
dc.format.mimetype application/pdf
dc.language English
dc.language.iso en_US
dc.publisher University of Alabama Libraries
dc.relation.ispartof The University of Alabama Electronic Theses and Dissertations
dc.relation.ispartof The University of Alabama Libraries Digital Collections
dc.relation.hasversion born digital
dc.rights All rights reserved by the author unless otherwise indicated.
dc.subject.other Finance
dc.title Essays on CEO behavior
dc.type thesis
dc.type text University of Alabama. Dept. of Economics, Finance, and Legal Studies Finance The University of Alabama doctoral Ph.D.

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