Firm Performance in the Face of Fear: How CEO Moods Affect Firm Performance. Ali Akansu et al. Journal of Behavioral Finance, http://www.tandfonline.com/doi/abs/10.1080/15427560.2017.1338704?journalCode=hbhf20

Abstract: The authors use facial emotion recognition software to quantify CEO mood. Anger or disgust motivates a CEO to work harder to improve his or her situation; thus firm profitability improves in the subsequent quarter. Happy CEOs are less likely to work on hard or unpleasant tasks; thus profitability decreases in the subsequent quarter. In the short term, fear explains the firm's announcement period market performance. However, fear is transient and performance improvement is short term.

KEYWORDS: Corporate governance, CEO, Firm performance, Moods, Affect, Emotions, Nonverbal information, Facial recognition, Emotion recognition, Soft information