CEOs who are perceived as conscientious are considered less risky and more able to translate risk into returns for shareholders, according to an Academy of Management Journal article—while CEOs seen as neurotic or extraverted are considered more risky and less able to translate risk into returns.

The authors of “Perception Is Reality: How CEOs’ Observed Personality Influences Market Perceptions of Firm Risk and Shareholder Returns” based their findings on more than 100,000 transcripts of quarterly earnings calls with equity analysts. The transcripts included 2,880 CEOs of 2,008 S&P 1500 firms from 1993 to 2015. With Alexander Gedranovich, cofounder of the IT firm, the authors created a linguistic tool to analyze the transcripts and CEOs’ personalities.

Read more at AOM Insights