Changing words: How temporal consistency in a CEO's use of language toward shareholders and stakeholders affects CEO dismissal

Shin, Taekjin; You, Jihae

doi:10.1111/corg.12302

Cited by 14 publications

(10 citation statements)

References 121 publications

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“…Cikaliuk, Eraković, Jackson, Noonan, & Watson, 2019) to define and pursue the purpose of their companies (Harrison et al, 2019). The stakeholder perspective on the role of the board chair in determining and pursuing the organizational purpose could also aid in understanding the role of ownership in such interactions and the importance of adopting a long‐term perspective and one that takes into account the legitimate interests of a broader set of stakeholders beyond shareholders (Shin & You, 2020).…”

Section: Agenda For Future Research On the Role Of The Board Chairmentioning

confidence: 99%

The role of the board chair—A literature review and suggestions for future research

Banerjee

Nordqvist

Hellerstedt

2020

Corporate Governance

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Research Question/Issue: The role of the board chair has become increasingly complex in recent decades. Research on corporate governance has called for and has initiated the pursuit of more research for the purpose of creating a better understanding of the role of board chairs. We reviewed 234 academic articles published in 66 journals, structured the existing research according to an Input-Process-Outcome-Contexts framework, and provided a future research agenda for studies on the role of the board chair. Research Findings/Insights: Our review reveals that the number of published studies on the position of the board chair has grown over the last two decades. Although extant research is dominated by quantitative studies exploring the impact of the board chair position on financial performance, frequently drawing on agency and stewardship theory, recent work has moved beyond this focus and has added valuable insights. The Input-Process-Outcome-Contexts framework used to structure the extant research reveals that future research should pursue topics related to all components of the framework and that opportunities exist to draw from a broader set of theories. Theoretical/Academic Implications: Based on the framework, we formulate seven specific research topics that can add valuable insights into the role of the board chair and suggest theories that can help inform research pursuing these topics. Taken together, these topics have the potential to create valuable insights into how board chairs are appointed, develop competencies, and interact and work with the CEO, the top management team, the board, and other stakeholders while acknowledging the influence of contextual factors, such as ownership, diversity, the firm's development stage, and external events and trends. Practitioner/Policy Implications: Our review shows a growing global movement toward prescribing more corporate governance regulations and separating the positions of the board chair and the CEO. We show that many aspects need to be considered when choosing a governance configuration and when appointing a board chair because this role is becoming increasingly demanding.

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Section: Agenda For Future Research On the Role Of The Board Chairmentioning

confidence: 99%

The role of the board chair—A literature review and suggestions for future research

Banerjee

Nordqvist

Hellerstedt

2020

Corporate Governance

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“…They also reveal that future‐oriented disclosures are more common among outsider, younger, and inexperienced CEOs. Scholars have also shown that consistency in the CEO's shareholder‐value language during his or her tenure increases the credibility of the CEO's signals and is positively perceived by the board, thereby reducing the odds of dismissal (Shin & You, 2020). In addition, Green et al (2019) find that a signal of extraversion in executive speech leads to longer tenure and lower turnover due to the corresponding signal of talent and leadership.…”

Section: Five Key Research Themesmentioning

confidence: 99%

CEO tenure: An integrative review and pathways for future research

Darouichi

Kunisch

Menz

et al. 2021

Corporate Governance

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Research Question/Issue: Chief executive officer (CEO) tenure-the time a person spends in the CEO position-is a key observable characteristic of the CEO that has attracted considerable attention in the fields of management and accounting/finance.Yet, the research has evolved in parallel streams, and scholars have used CEO tenure as a proxy for various aspects of CEO givens and behaviors. The purpose of this paper is to consolidate, assess, and integrate the extant knowledge about CEO tenure from the fields of management and accounting/finance and, on that basis, stimulate future research.Research Findings/Insights: Our review reveals five key themes in CEO tenure research that have been studied across the management and accounting/finance fields: (1) CEO tenure and motivations; (2) CEO tenure and power; (3) CEO tenure and social capital; (4) CEO tenure and human capital; and (5) CEO tenure and stakeholder perceptions. We review the extant research along these research themes, highlighting the collective insights, contributions, and shortcomings within and between these themes.Theoretical/Academic Implications: Our review suggests that CEO tenure is a multifaceted, complex construct. To advance extant knowledge, we propose three pathways for future research: (1) substantiating knowledge within themes;(2) expanding knowledge across themes; and (3) advancing knowledge about temporal dynamics. We hope that research along those lines will help foster a richer and deeper understanding of the dynamic and complex nature of CEO tenure, which will also advance our understanding about CEOs in general.Practitioner/Policy Implications: Our study offers a comprehensive understanding of the nature of CEO tenure and its implications. Such an understanding can be leveraged to define appropriate policies and governance decisions that account for the dynamic nature of the CEO position.

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“…The individual CEO can frame the narrative that they want to convey to the readership (Dikolli et al, 2020;Mmako, 2016). The chosen narrative could have effects on the readers/shareholders, e.g., consistently using words in the letter that emphasise shareholder value, year after year, has been found to markedly reduce the chances of the CEO being dismissed (Shin & You, 2020). Asay et al (2018a) find that use of personal pronouns and the presence of a picture of the CEO with the shareholder letter both affect investors' perceptions.…”

Section: Ceo Shareholder Letters As Vehicles For Impression Managementmentioning

confidence: 99%

Narrative Styles and Institutional Isomorphism in South African CEOs' Shareholder Letters

Toit

Esterhuyse

2021

Afr. j. inf. commun. (Online)

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Among the most-read corporate documents are chief executive officers’ (CEOs’) shareholder letters. Using institutional isomorphism as lens, this study examines the extent to which the narrative styles used by South African CEOs in their shareholder letters are similar to the styles used by CEOs at leading international companies. The study also explores the degree to which impression management techniques are present in the South African CEOs’ shareholder letters. The study uses DICTION software to conduct a narrative analysis of South African CEOs’ shareholder letters for a single financial year, and compares the findings with those drawn from the Craig and Amernic (2018) study of the shareholder letters of CEOs from samples of international Fortune 500 and FTSE 100 companies. The study finds that optimism and realism are the two most-used narrative styles in South African CEOs’ shareholder letters, and that these findings are markedly similar to those generated by the Craig and Amernic (2018) study of international companies. The study contributes to the understanding of normative institutional isomorphism in corporate reporting by providing empirical evidence that the narrative styles employed by CEOs of companies in a developing economy with high corporate governance standards conform to the same norms as those of CEOs of large international companies. The study also finds that the South African CEOs’ dominant communication styles in the shareholder letters lend themselves to being tools of impression management.

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Changing words: How temporal consistency in a CEO's use of language toward shareholders and stakeholders affects CEO dismissal

Cited by 14 publications

References 121 publications

The role of the board chair—A literature review and suggestions for future research

The role of the board chair—A literature review and suggestions for future research

CEO tenure: An integrative review and pathways for future research

Narrative Styles and Institutional Isomorphism in South African CEOs' Shareholder Letters

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