Abstract
This paper examines the impact of chief executive officer (CEO) extraversion on firms’ cost of debt. We find that extraverted CEOs excel in navigating challenging or uncertain situations, leading to lower offering yield spreads and longer maturity terms on newly issued corporate debt in tight credit market conditions. Furthermore, our study identifies the information channel underlying the CEO extraversion effect. By improving the firm’s information environment, extraverted CEOs exert a more significant impact on bond issuances from opaque firms. Our research provides new evidence on how CEO personality traits can influence corporate financial decisions.
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