The Relationship Between Leader Extraversion and Company Financial Performance

The purpose of this quantitative, correlational study was to examine if a C-level leader’s extraversion, measured by enthusiasm and assertiveness, relates to firm goal achievement (FGA). Participants were 113 C-level leaders of companies. Two theoretical foundations of Trait Personality and company financial performance were used to study if relationships existed between extraversion, as measured by subscales of enthusiasm and assertiveness from the Big Five Aspect Scale (BFAS), and FGA. The researcher tested six hypotheses, collecting data from a convenience and snowball sample (n = 113) of C-level leaders. A multiple regression analysis revealed that extraversion is positive related to FGA, F(2,110) = 3.24, p .05, sr = -.04. A semi-partial correlation found assertiveness is a positively related to FGA with a positive relationship when controlled for enthusiasm, t(112) = 2.40, p < .05, sr = .22. The results suggest that there is a more nuanced relationship between leader extraversion and its subscales than previously understood, which differs from earlier studies and may influence current approaches to C-level leadership development and selection. These findings may benefit C-level leaders, executive recruiters, and OB/HR professionals