Executive traits sway investment decisions: a former top-rated analyst shares insights on thinking from the buy-side and qualities the pros look for in companies--and their executives.(FROM WHERE I SIT)(Viewpoint essay)

Financial Executive, April, 2008 by McClellan, Stephen T.

Investors evaluate companies by gauging management effectiveness, quality, character and values. Yet, surprisingly, financial executives, who have an inordinate influence on their stock price--or for private companies, on the company's investment valuation--often transmit the wrong signals and act improperly with their investors. They fall prey to cheerleading and puffery. They over-promote their stock and manage the stock instead of the company.

The executive traits that are good indicators of management quality are relatively simple. These reassuring characteristics suggest to investors that a company is likely to have promising merit. The following executive attributes are key to any company's evaluation by outside entities, not just investors or Wall...

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