Managerial traits and investment efficiency – The role of long-term orientation and perceived trustworthiness

• Applicant: Professor Dr. Wolfgang Breuer
• Subject Area: Accounting and Finance
• Term: from 2018 to 2021
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 409307532

Investment efficiency of companies has been one of the most important concepts in the corporate finance literature and practice. Whereas a range of firm-specific and country-specific factors has received a great deal of attention for explaining investment efficiency, the belief that managerial attributes can profoundly influence the process of financial decision making of a company has gained ground in the literature. We want to broaden this scope and examine the role of time preferences and perceived trustworthiness for the resulting investment efficiency. Both traits will be obtained through novel procedures of linguistic analysis of annual reports and visual analysis of managers’ outer appearance.

• DFG Programme: Research Grants