The Moderating Role of Stereotype and similarity Biases on the Impact of CEO Extraversion on Financial Analysts' Forecasts

Document Type : Research Paper

Authors

Department of Accounting, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran

10.22103/jak.2024.23239.4036

Abstract

Abstract

Objective: The extroverted personality of the CEO can be one of the non-financial information that affects the financial analysts' predictions about the company's performance. Also, the stereotypical and similarity of cognitive biases in financial analysts' forecasts have led them to believe that extroverted CEO are more successful. Based on this, the aim of this study is to investigate the moderating role of stereotype and similarity biases on the effect of CEO extraversion on financial analysts' forecasts.

Method: The current research is applied in terms of purpose and survey in terms of data collection. In order to collect data, a scenario-based questionnaire was used, and the data analysis method is inferential. The statistical population of the research is financial analysts, and based on the sampling method of power analysis, the number of 200 financial analysts was selected in the period of 2023. Independent-samples T test analysis was used to test research hypotheses.

Results: The results of the research indicate that the extroverted personality of the CEO does not affect the forecast of financial analysts, and stereotype and similarity biases did not moderate the forecast of financial analysts.

Conclusion: In general, the research results indicate that financial analysts in Iran's economic environment do not have stereotype and similarity biases in their predictions of company performance, and these biases have not led to the deviation of their predictions regarding the company's performance.

Keywords: CEO Extraversion, Stereotypes Bias, Similarity Bias, Financial Analyst.

Paper Type: Research Paper

Keywords

Main Subjects



Articles in Press, Accepted Manuscript
Available Online from 07 September 2024
  • Receive Date: 16 April 2024
  • Revise Date: 09 August 2024
  • Accept Date: 07 September 2024