Dragon CEOs and Firm Value

  • Tao CHEN*
  • *Corresponding author for this work

Research output: Journal PublicationsJournal Article (refereed)peer-review

Abstract

This article investigates a traditional belief of the Chinese zodiac that individuals born in the dragon year are superior and perform better. Using a sample of listed firms in China, supporting evidence is found for this pervasive superstition that CEOs born in dragon years are positively associated with firm value as measured by Tobin's Q and return on assets. This positive relationship becomes even stronger when the exact birth date of CEOs is known. Finally, the Dragon Survivors Hypothesis and the CEO Self-fulfillment Hypothesis are examined to explain why dragon CEOs matter to firm value.

Original languageEnglish
Pages (from-to)382-395
Number of pages14
JournalAustralian Economic Review
Volume51
Issue number3
Early online date30 Jul 2018
DOIs
Publication statusPublished - Sept 2018
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2018 The University of Melbourne, Melbourne Institute of Applied Economic and Social Research

Funding

I thank the editor, Ross Williams, and two anonymous referees for their helpful comments and suggestions. I also acknowledge Start-up Research Grant (SRG2018-00115-FBA) support from the University of Macau. All errors remain my own responsibility.

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