We assess whether observable corporate political strategies can serve as channels of value-relevant political information flow into stock prices and form the basis for profitable return predictability strategies. We document that returns of politically connected firms' stocks lead those of their...

Combining studies on CEO personality traits and real options theory, we propose that the firm’s strategic flexibility can be improved by CEO openness to experience but worsened by CEO conscientiousness and neuroticism. We construct the degree of strategic flexibility by exploring the firm’s...