JOURNAL OF LEADERSHIP, ACCOUNTABILITY AND ETHICS
The H Factor: A Behavioral Explanation of Leadership
Failures in the 2007-2009 Financial System Meltdown
Author(s): Charles F. Falk, Bruce K. Blaylock
Citation: Charles F. Falk, Bruce K. Blaylock, (2012) "The H Factor: A Behavioral Explanation of Leadership
Failures in the 2007-2009 Financial System Meltdown," Journal of Leadership, Accountability and Ethics, Vol. 9, Iss. 2, pp. 68 - 82
Article Type: Research paper
Publisher: North American Business Press
Abstract:
To date, several technical analyses offer causality for the 2007-2009 “Great Recession.” This work offers
a different perspective by applying behavioral analysis of the actions taken by the relatively small number
of leaders in the middle of the maelstrom. Using a behavioral construct called the “H Factor,” the
researchers examined how a sample of key players scored on the negative traits of hubris, hypocrisy, and
hostility; and on the positive traits of honor, humility, and honesty. The researchers posit that those
choosing leaders for key positions could benefit by evaluating candidates through a prism of an H
Factor-based analysis.