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Dragon CEOs and Firm Value

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  • Tao Chen

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.

Suggested Citation

  • Tao Chen, 2018. "Dragon CEOs and Firm Value," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 51(3), pages 382-395, September.
    • Handle: RePEc:bla:ausecr:v:51:y:2018:i:3:p:382-395
    DOI: 10.1111/1467-8462.12277
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