CEO influence on strategic decisions and firm outcomes A behavioral perspective

Firms today operate in an increasingly complex environment shaped by digital transformation, artificial intelligence, globalization, resource constraints, and geopolitical and trade instability. The strategic value of investing in corporate social responsibility (CSR), sustainable development goals (SDGs), or firm growth is often ambiguous and contested. Drawing on Upper Echelons Theory, this dissertation investigates how CEOs’ personal attributes and life experiences influence these strategic decisions and firm outcomes.
The first study introduces CEO masculinity-femininity, finding in S&P 100 panel data that predominantly feminine CEOs lead firms to higher levels of CSR. Firm risk and institutional ownership attenuate this relationship. The second study uses original survey data to investigate how CEO political orientation, social class background, and openness to change values influence SDG contribution preferences. Progressive and lower- or upper-class CEOs prioritize social and environmental SDGs, whereas conservative and middle-class CEOs emphasize economic goals. Openness to change weakens the effect of social class background. The third study examines in S&P 100 panel data how CEO marriage and parenthood affect firm growth. Marriage is positively associated with growth, while parenthood is negatively associated, with high firm risk dampening marriage’s positive effect.
Collectively, these studies show how personal and often overlooked CEO attributes and experiences shape strategic decisions and firm outcomes, thereby contributing to the literature on upper echelons, CEO effects, and strategic leadership. These findings offer practical insights and encourage a broader perspective on CEO selection, development, and incentive design to improve alignment between CEOs and organizational strategic goals.