Personality characteristics, Managers’ Financial Intelligence and Corporate Performance

Intrinsic features such as personality traits and acquired features such as financial intelligence of managers can undermine their behavior and type of decision in the organization and affect financial performance. In this research, the effect of personality characteristics on the performance of the company has been investigated considering the moderating effect of managers' financial intelligence.

The personality characteristics of managers were measured through five components: neuroticism, extraversion, Openness to experiences, agreableness and conscientiousness using the Neo standard questionnaire and the financial intelligence with the standard Kiosaki questionnaire. The research period during which the questionnaires were distributed is fiscal year 2017. The sample included 291 firms listed in Tehran Stock Exchange.

The results of this study, using the structural equation modeling approach, indicated that the personality characteristics: neuroticism, acceptance and conscientiousness had a significant positive effect on the performance of the company, and extraversion and adaptation were not significant on company’s performance. In addition, the effect of financial intelligence adjustment on the impact of all components on the company's performance was not confirmed.

Our findings show that only some personality characteristics of managers have an impact on the firm's performance. In this regard, financial intelligence can not affect the relationship between managerial personality characteristics and corporate performance.

For the first time, this research has examined the effect of managers' personality characteristics on firms’ performance. Our findings contribute to the development of the literature on behavioral finance and related theories.