CEO characteristics and tone at the top inconsistency

Liu, Pu; Nguyen, Hazel Thu-Hien

doi:10.1016/j.jeconbus.2019.105887

Cited by 30 publications

(23 citation statements)

References 43 publications

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“…However, the outcome falls short in the strategic implication of CEO decisions due to its characteristics. The consequence is underestimating the disclosure risk (i.e., environmental disclosure), which can affect a firm (Liu & Nguyen, 2020). Likewise, Theissen and Theissen (2020) also raised the concern in the interpretation of CEO characteristics and corporate pollution and yet still, not much has address CEO characteristics and environmental disclosure concerns.…”

Section: Introductionmentioning

confidence: 99%

CEO characteristics and environmental disclosure of listed firms in an emerging economy: Does sustainability reporting format matter?

Oware

Awunyo‐Vitor

2021

Bus Strat Dev

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The study's purpose examines chief executive officer (CEO) characteristics, sustainability reporting format, and environmental disclosure of listed firms in India. Eight hundred firm‐year observations across India's firms applied panel regression with random effect assumptions and general method of moment. The first findings show that reporting format has a positive and statistically significant association with environmental disclosure. The second findings show that CEO age and CEO tenure have an insignificant association, but CEO duality negatively associates with environmental disclosure. The third findings show that CEO characteristics (tenure and duality) × report format is insignificant. However, the CEO age × report format has a positive and statistically significant association with listed firms' environmental disclosure in India. The strategic implication shows that the choice of a stand‐alone sustainability reporting in environmental communication disclosure is a strategic benefit that secures strategic investors and investment in the firm. For the firm to be recognized as a strategic partner in global sustainable development goals, CEOs with longer tenure and aged CEOs engagements are an unsuitable investment, which Indian firms must not pursue. Endogeneity problems across panels are addressed in this study. This study's novelty examines the interactive effect of CEO characteristics and sustainability report format on environmental disclosure in India.

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Section: Introductionmentioning

confidence: 99%

CEO characteristics and environmental disclosure of listed firms in an emerging economy: Does sustainability reporting format matter?

Oware

Awunyo‐Vitor

2021

Bus Strat Dev

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“…Davis et al (2015) also find that the linguistic tone used by managers in conference calls is influenced by their dispositional optimism and their age. Liu and Nguyen (2019) find that CEO overconfidence is associated with a higher percentage of positive words used in CEO letters and MD&As.…”

Section: Measuring Managerial Optimismmentioning

confidence: 71%

Managerial optimism and corporate cash holdings

Trần

Hoang

2020

IJMF

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PurposeThis paper examines the effects of managerial optimism on corporate cash holdings.Design/methodology/approachThe authors construct a novel measure of managerial optimism based on the linguistic tone of annual reports by applying a Naïve Bayesian Machine Learning algorithm to non-numeric parts of Vietnamese listed firms' reports from 2010 to 2016. The paper employs firm and year fixed effects model and also uses the generalized method of moments estimation as robustness checks.FindingsThe authors find that the cash holding of firms managed by optimistic managers is higher than the cash holdings of firms managed by non-optimistic managers. Managerial optimism also influences corporate cash holdings through internal cash flows and the current year’s capital expenditures. Although the authors find no evidence that optimistic managers hold more cash to finance future growth opportunities in general, optimistic managers hold more cash for near future investment opportunities than non-optimistic managers do.Research limitations/implicationsThe novel measure proposed in this study is expected to provide great potential for future finance studies investigating the relation between managerial traits and corporate policies since it is applicable for any levels of financial market development. In addition, the findings highlight the important role, both direct and indirect, of managerial optimism on cash holdings. Related future research should take this psychological trait into account to gain a better understanding of corporate cash holding.Originality/valueThis paper helps to extend the literature on managerial optimism measurement by introducing a new measure of managerial optimism based on the linguistic tone of annual reports. Furthermore, this is among the first studies directly linking annual report linguistic tone to cash holding. The paper also provides new evidence regarding how managerial optimism affects the relationship between the firm's growth opportunities and cash holding, given that mispricing corrections are naturally uncertain.

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“…CEOs are an important symbol of a firm (Beauchamp & O’Connor, 2012; Park & Berger, 2004) or even “corporate heroes” (Amernic & Craig, 2006) and their statements have important symbolic value in structuring authority and leadership as well as building stakeholder support, especially in times of crisis (Liu & Nguyen, 2020; Mardini & Lahyani, 2020; Seeger & Ulmer, 2002). This also affects investors’ decisions (Clatworthy & Jones, 2003, 2006; Kohut & Segars, 1992).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Impression management tactics in the CEO statements of Turkish sustainability reports

Çalışkan

Esen

Barkemeyer

2021

Business Ethics Env & Resp

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In this study, we construct a classificatory scheme of impression management tactics and apply it to a sample of sustainability report and annual report CEO statements issued by large Turkish companies. We find a wide range of impression management tactics applied in both types of CEO statements. However, impression management in sustainability report CEO statements emerges as more limited and uniform, revealing clearer prioritizations of impression management tactics when compared to annual report CEO statements. Sustainability report CEO statements emphasize tactics that allow the company to highlight carefully selected, isolated aspects of their sustainability engagement. At the same time, they rarely employ tactics that are geared towards more systematic (quantitative) performance evaluation. We attribute these differences to the way in which corporate sustainability performance is commonly conceptualized and evaluated, emphasising qualitative performance dimensions rather than the reporting of quantitative performance metrics. This results in the application of a different impression management tactics mix and limits the usefulness of sustainability reports as an accountability mechanism when compared to corporate annual reports. In addition, we provide tentative evidence for the context‐specific nature of impression management, with the choice of impression management tactics reflecting the institutional environment a company is based in.

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CEO characteristics and tone at the top inconsistency

Cited by 30 publications

References 43 publications

CEO characteristics and environmental disclosure of listed firms in an emerging economy: Does sustainability reporting format matter?

CEO characteristics and environmental disclosure of listed firms in an emerging economy: Does sustainability reporting format matter?

Managerial optimism and corporate cash holdings

Impression management tactics in the CEO statements of Turkish sustainability reports

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