IDEAS home Printed from https://ideas.repec.org/a/idn/journl/v26y2023i2bp289-310.html
   My bibliography  Save this article

Determinants Of Bank Performance: Revisiting The Role Of Ceo’S Personality Traits Using Graphology

Author

Listed:
  • Thanh Ngo

    (Massey University, New Zealand.)

  • Tu DQ Le

    (Vietnam National University, Vietnam)

  • Dat T Nguyen

    (Vietnam. Vietnam National University, Vietnam)

  • Tin H Ho

    (Vietnam. Vietnam National University, Vietnam)

Abstract

It is well-known that Chief Executive Officer (CEO) plays an important role in the success of many businesses. In this study, we revisit the relationship between CEO’s personality and firm performance for 27 Vietnamese commercial banks. We use graphology to classify 299 handwritten signatures of CEOs into different personality traits such as extraversion or conscientiousness. Those personalities, among other factors (e.g., ownership, listed status, and CEOs’ experiences), are then used to explain bank performance. We document that banks with conscientious CEOs tend to outperform their counterparts.

Suggested Citation

  • Thanh Ngo & Tu DQ Le & Dat T Nguyen & Tin H Ho, 2023. "Determinants Of Bank Performance: Revisiting The Role Of Ceo’S Personality Traits Using Graphology," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 26(2), pages 289-310, May.
    • Handle: RePEc:idn:journl:v:26:y:2023:i:2b:p:289-310
    DOI: https://doi.org/10.59091/1410-8046.2066
    as

    Download full text from publisher

    File URL: https://bulletin.bmeb-bi.org/cgi/viewcontent.cgi?article=2066&context=bmeb
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.59091/1410-8046.2066?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Avkiran, Necmi K., 2011. "Association of DEA super-efficiency estimates with financial ratios: Investigating the case for Chinese banks," Omega, Elsevier, vol. 39(3), pages 323-334, June.
    2. Jing Chen & Zhe Zhang & Ming Jia, 2021. "How CEO narcissism affects corporate social responsibility choice?," Asia Pacific Journal of Management, Springer, vol. 38(3), pages 897-924, September.
    3. Helmi Hammami & Thanh Ngo & David Tripe & Dinh-Tri Vo, 2022. "Ranking with a Euclidean common set of weights in data envelopment analysis: with application to the Eurozone banking sector," Annals of Operations Research, Springer, vol. 311(2), pages 675-694, April.
    4. Ulrike Malmendier & Geoffrey Tate, 2005. "CEO Overconfidence and Corporate Investment," Journal of Finance, American Finance Association, vol. 60(6), pages 2661-2700, December.
    5. Thomas Astebro & Holger Herz & Ramana Nanda & Roberto A. Weber, 2014. "Seeking the Roots of Entrepreneurship: Insights from Behavioral Economics," Journal of Economic Perspectives, American Economic Association, vol. 28(3), pages 49-70, Summer.
    6. Jasna Auer Antoncic & Bostjan Antoncic & Darja Kobal Grum & Mitja Ruzzier, 2018. "The Big Five Personality Of The Sme Manager And Their Company’S Performance," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 23(04), pages 1-23, December.
    7. Thanh Ngo & Qixia Tian, 2020. "Corporate social responsibility awareness and performance: the case of Chinese airports," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 70(8), pages 2131-2148, October.
    8. Yunhwan Kim & Sunmi Lee, 2021. "Personality of Public Health Organizations’ Instagram Accounts and According Differences in Photos at Content and Pixel Levels," IJERPH, MDPI, vol. 18(8), pages 1-15, April.
    9. Tin H. Ho & Dat T. Nguyen & Thanh Ngo & Tu D. Q. Le, 2021. "Efficiency in Vietnamese Banking: A Meta-Regression Analysis Approach," IJFS, MDPI, vol. 9(3), pages 1-15, August.
    10. Ha Thu Vu & Sean Turnell, 2010. "Cost Efficiency of the Banking Sector in Vietnam: A Bayesian Stochastic Frontier Approach with Regularity Constraints," Asian Economic Journal, East Asian Economic Association, vol. 24(2), pages 115-139, June.
    11. Thanh Ngo & Tu Le, 2019. "Capital market development and bank efficiency: a cross-country analysis," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 15(4), pages 478-491, June.
    12. Charles Ham & Nicholas Seybert & Sean Wang, 2018. "Narcissism is a bad sign: CEO signature size, investment, and performance," Review of Accounting Studies, Springer, vol. 23(1), pages 234-264, March.
    13. Thanh Ngo & Tu Le, 2019. "Capital market development and bank efficiency: a cross-country analysis," International Journal of Managerial Finance, Emerald Group Publishing Limited, vol. 15(4), pages 478-491, June.
    14. Emilia Peni, 2014. "CEO and Chairperson characteristics and firm performance," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 18(1), pages 185-205, February.
    15. Tram Nguyen & David Tripe & Thanh Ngo, 2018. "Operational Efficiency of Bank Loans and Deposits: A Case Study of Vietnamese Banking System," IJFS, MDPI, vol. 6(1), pages 1-13, January.
    16. Thanh Ngo & Hung V. Vu & Huong Ho & Thuy T. T. Dao & Hai T. H. Nguyen, 2019. "Performance of Fish Farms in Vietnam–Does Financial Access Help Improve Their Cost Efficiency?," IJFS, MDPI, vol. 7(3), pages 1-10, August.
    17. Al-Harbi, Ahmad, 2019. "The determinants of conventional banks profitability in developing and underdeveloped OIC countries," Journal of Economics, Finance and Administrative Science, Universidad ESAN, vol. 24(47), pages 4-28.
    18. Thanh Ngo & Tu Le & Son H. Tran & Anh Nguyen & Canh Nguyen, 2019. "Sources of the performance of manufacturing firms: evidence from Vietnam," Post-Communist Economies, Taylor & Francis Journals, vol. 31(6), pages 790-804, November.
    19. Wen-Ting Lin & Kuei-Yang Cheng, 2013. "The effect of upper echelons’ compensation on firm internationalization," Asia Pacific Journal of Management, Springer, vol. 30(1), pages 73-90, March.
    20. Thanh Pham Thien Nguyen & Son Hong Nghiem & Eduardo Roca & Parmendra Sharma, 2016. "Bank reforms and efficiency in Vietnamese banks: evidence based on SFA and DEA," Applied Economics, Taylor & Francis Journals, vol. 48(30), pages 2822-2835, June.
    21. Barbara Casu & Philip Molyneux, 2003. "A comparative study of efficiency in European banking," Applied Economics, Taylor & Francis Journals, vol. 35(17), pages 1865-1876.
    22. Rupinder Kaur & Balwinder Singh, 2018. "CEOs’ Characteristics and Firm Performance: A Study of Indian Firms," Indian Journal of Corporate Governance, , vol. 11(2), pages 185-200, December.
    23. Ariff, Mohamed & Can, Luc, 2008. "Cost and profit efficiency of Chinese banks: A non-parametric analysis," China Economic Review, Elsevier, vol. 19(2), pages 260-273, June.
    24. Ana Lozano-Vivas & Fotios Pasiouras, 2014. "Bank Productivity Change and Off-Balance-Sheet Activities Across Different Levels of Economic Development," Journal of Financial Services Research, Springer;Western Finance Association, vol. 46(3), pages 271-294, December.
    25. Zeguang Li & Keqiang Hou & Simon Cottrell, 2018. "Do Listed Banks have Higher Operating Efficiency and Output Efficiency?," Australian Economic Papers, Wiley Blackwell, vol. 57(3), pages 309-326, September.
    26. Vita Akstinaite & Graham Robinson & Eugene Sadler-Smith, 2020. "Linguistic Markers of CEO Hubris," Journal of Business Ethics, Springer, vol. 167(4), pages 687-705, December.
    27. Wei, Jiuchang & Ouyang, Zhe & Chen, Haipeng (Allan), 2018. "CEO characteristics and corporate philanthropic giving in an emerging market: The case of China," Journal of Business Research, Elsevier, vol. 87(C), pages 1-11.
    28. Ulrike Malmendier & Geoffrey Tate, 2005. "Does Overconfidence Affect Corporate Investment? CEO Overconfidence Measures Revisited," European Financial Management, European Financial Management Association, vol. 11(5), pages 649-659, November.
    29. Caiyun Liu & Hui Jiang, 2020. "Impact of CEO characteristics on firm performance: evidence from China listed firms," Applied Economics Letters, Taylor & Francis Journals, vol. 27(14), pages 1-5, July.
    30. Ahmad Al-Harbi, 2019. "The determinants of conventional banks profitability in developing and underdeveloped OIC countries," Journal of Economics, Finance and Administrative Science, Emerald Group Publishing Limited, vol. 24(47), pages 4-28, April.
    31. Peinan Ji & Xiangbin Yan & Guang Yu, 2020. "The Impact of Enterprise IT Investment on Corporate Performance: Evidence from China," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 23(3), pages 176-190, July.
    32. Keri L. Kettle & Gerald Häubl, 2011. "The Signature Effect: Signing Influences Consumption-Related Behavior by Priming Self-Identity," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 38(3), pages 474-489.
    33. Alison Mackey, 2008. "The effect of CEOs on firm performance," Strategic Management Journal, Wiley Blackwell, vol. 29(12), pages 1357-1367, December.
    34. Shavin Malhotra & Joseph S. Harrison, 2022. "A blessing and a curse: How chief executive officer cognitive complexity influences firm performance under varying industry conditions," Strategic Management Journal, Wiley Blackwell, vol. 43(13), pages 2809-2828, December.
    35. Coles, Jeffrey L. & Daniel, Naveen D. & Naveen, Lalitha, 2006. "Managerial incentives and risk-taking," Journal of Financial Economics, Elsevier, vol. 79(2), pages 431-468, February.
    36. Charles Ham & Mark Lang & Nicholas Seybert & Sean Wang, 2017. "CFO Narcissism and Financial Reporting Quality," Journal of Accounting Research, Wiley Blackwell, vol. 55(5), pages 1089-1135, December.
    37. Tu DQ Le & Son H. Tran & Liem T. Nguyen, 2019. "The impact of multimarket contacts on bank stability in Vietnam," Pacific Accounting Review, Emerald Group Publishing Limited, vol. 31(3), pages 336-357, May.
    38. Sani Saidu, 2019. "CEO characteristics and firm performance: focus on origin, education and ownership," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-15, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tutun Mukherjee & Som Sankar Sen, 2022. "Impact of CEO attributes on corporate reputation, financial performance, and corporate sustainable growth: evidence from India," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-50, December.
    2. Khoo, Shee-Yee & Perotti, Pietro & Verousis, Thanos & Watermeyer, Richard, 2024. "Vice-chancellor narcissism and university performance," Research Policy, Elsevier, vol. 53(1).
    3. Duong, Kiet Tuan & Banti, Chiara & Instefjord, Norvald, 2021. "Managerial conservatism and corporate policies," Journal of Corporate Finance, Elsevier, vol. 68(C).
    4. Xuan Thi Thanh Mai & Ha Thi Nhu Nguyen & Thanh Ngo & Tu D. Q. Le & Lien Phuong Nguyen, 2023. "Efficiency of the Islamic Banking Sector: Evidence from Two-Stage DEA Double Frontiers Analysis," IJFS, MDPI, vol. 11(1), pages 1-14, February.
    5. Sabri Boubaker & T.D.Q. Le & T. Ngo & R. Manita, 2023. "Predicting the Performance of MSMEs: A Hybrid DEA-machine Learning Approach," Post-Print hal-04434027, HAL.
    6. Tu D. Q. Le & Tin H. Ho & Thanh Ngo & Dat T. Nguyen & Son H. Tran, 2022. "A Dataset for the Vietnamese Banking System (2002–2021)," Data, MDPI, vol. 7(9), pages 1-8, August.
    7. Zhou, Linzi & Long, Wenbin & Qu, Xin & Yao, Daifei, 2023. "Celebrity CEOs and corporate investment: A psychological contract perspective," International Review of Financial Analysis, Elsevier, vol. 87(C).
    8. Mai, Nhat Chi, 2015. "Efficiency of the banking system in Vietnam under financial liberalization," OSF Preprints qsf6d, Center for Open Science.
    9. Finja Lena Kind & Jennifer Zeppenfeld & Rainer Lueg, 2023. "The impact of chief executive officer narcissism on environmental, social, and governance reporting," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4448-4466, November.
    10. Karel Hrazdil & Jiri Novak & Rafael Rogo & Christine Wiedman & Ray Zhang, 2020. "Measuring executive personality using machine‐learning algorithms: A new approach and audit fee‐based validation tests," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 47(3-4), pages 519-544, March.
    11. Tu D. Q. Le & Thanh Ngo & Tin H. Ho & Dat T. Nguyen, 2022. "ICT as a Key Determinant of Efficiency: A Bootstrap-Censored Quantile Regression (BCQR) Analysis for Vietnamese Banks," IJFS, MDPI, vol. 10(2), pages 1-15, June.
    12. David Hirshleifer & Angie Low & Siew Hong Teoh, 2012. "Are Overconfident CEOs Better Innovators?," Journal of Finance, American Finance Association, vol. 67(4), pages 1457-1498, August.
    13. Johannes Brunzel, 2023. "Linguistic cues of chief executive officer personality and its effect on performance," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 215-243, January.
    14. Chan, Kam C. & He, Jie & Li, Changwei & Zhang, Linlang, 2023. "Narcissistic managers and IPO underpricing," International Review of Financial Analysis, Elsevier, vol. 89(C).
    15. Johannes Brunzel, 2021. "Overconfidence and narcissism among the upper echelons: a systematic literature review," Management Review Quarterly, Springer, vol. 71(3), pages 585-623, July.
    16. Yung, Kenneth & Nguyen, Trung, 2020. "Managerial ability, product market competition, and firm behavior," International Review of Economics & Finance, Elsevier, vol. 70(C), pages 102-116.
    17. Aabo, Tom & Rønnow, Sara Korsdal, 2024. "Female CEOs with a squeeze of narcissism: A perfect cocktail for corporate performance?," Finance Research Letters, Elsevier, vol. 64(C).
    18. Ahmed, Mohamed Shaker & Kumar, Satish, 2023. "Are MBA CEOs really more risk-averse?," International Review of Financial Analysis, Elsevier, vol. 89(C).
    19. Sara Bormann & Debbie Claassen & Christian Hofmann & Nina Schwaiger, 2020. "Conservative traits and managerial forecasting style," Journal of Business Economics, Springer, vol. 90(3), pages 335-368, April.
    20. Tao Chen, 2018. "Dragon CEOs and Firm Value," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 51(3), pages 382-395, September.

    More about this item

    Keywords

    Big five personality traits; CEO signature; Graphology; Performance; Upper echelons; Vietnamese banks;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:idn:journl:v:26:y:2023:i:2b:p:289-310. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lutzardo Tobing or Jimmy Kathon (email available below). General contact details of provider: https://edirc.repec.org/data/bigovid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.