Abstract
This study questions whether certain CEO profiles are linked to a previously unexamined potentially overconfident decision: callable debt issuance. Callable bonds may appear attractive to CEOs who overestimate future firm value and consider the current cost of debt excessive. Using a unique database, we discover that CEOs with traditional personal lives (i.e., Republican, Christian, married parents) do display optimistic tendencies. Not only are they more likely to issue callable debt, their callable issues have shorter call protection periods and are less likely to be called. Because the profiles are formed from observable executive characteristics, they can be easily utilized in employment and investment decisions.
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