The nexus of top executives’ attributes, firm strategies, and outcomes: Large firms versus SMEs

Abstract Based on a unique and extensive dataset of top executives, this study explores the effect executives’ attributes firm performance through strategic choices for capital structure investments. The big five personalities other four essential personal are identified from over 970,000 observations in Japanese firms. We applied structural equational modeling to test hypothesized mediation models differences across large, medium, small-sized results show that executives small medium-sized enterprises (SMEs) present stronger linkages with choices, significantly mediating relationship between performance. Specifically, higher conscientiousness , decisiveness financial prudence tend choose conservative strategies, while those neuroticism, openness agreeableness adopt risky innovative strategies. In contrast, can hardly predict strategies outcomes large firms, neither fails SMEs given inconsistent mediation.