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Jockeying for position in CEO letters : impression management and sentiment analytics

(2019) FINANCIAL MANAGEMENT. 48(1). p.77-115
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Abstract
This paper evidences the strategic positioning of positive and negative words within a CEO letter as a subtle form of impression management. We find that managers tend to present information in such an order that the reader of the CEO letter has a more positive perception of the underlying message. We uncover a smile in the frequency of positive words within the letter, and a half smile in the intratextual distribution of negative words, with a prevalence of negative words at the beginning of the letter. We also find a significant positive association between this qualitative impression management and the use of abnormal accruals in earnings management. We propose sentiment analytics that can compensate for the strategic management of narrative structure and find that the proposed position weighted sentiment has more predictive power for the firm performance over the next year.
Keywords
EARNINGS MANAGEMENT, INFORMATION-CONTENT, SERIAL POSITION, CORPORATE, RECALL, TONE, LANGUAGE

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MLA
Boudt, Kris, and James Thewissen. “Jockeying for Position in CEO Letters : Impression Management and Sentiment Analytics.” FINANCIAL MANAGEMENT, vol. 48, no. 1, 2019, pp. 77–115.
APA
Boudt, K., & Thewissen, J. (2019). Jockeying for position in CEO letters : impression management and sentiment analytics. FINANCIAL MANAGEMENT, 48(1), 77–115.
Chicago author-date
Boudt, Kris, and James Thewissen. 2019. “Jockeying for Position in CEO Letters : Impression Management and Sentiment Analytics.” FINANCIAL MANAGEMENT 48 (1): 77–115.
Chicago author-date (all authors)
Boudt, Kris, and James Thewissen. 2019. “Jockeying for Position in CEO Letters : Impression Management and Sentiment Analytics.” FINANCIAL MANAGEMENT 48 (1): 77–115.
Vancouver
1.
Boudt K, Thewissen J. Jockeying for position in CEO letters : impression management and sentiment analytics. FINANCIAL MANAGEMENT. 2019;48(1):77–115.
IEEE
[1]
K. Boudt and J. Thewissen, “Jockeying for position in CEO letters : impression management and sentiment analytics,” FINANCIAL MANAGEMENT, vol. 48, no. 1, pp. 77–115, 2019.
@article{8600238,
  abstract     = {This paper evidences the strategic positioning of positive and negative words within a CEO letter as a subtle form of impression management. We find that managers tend to present information in such an order that the reader of the CEO letter has a more positive perception of the underlying message. We uncover a smile in the frequency of positive words within the letter, and a half smile in the intratextual distribution of negative words, with a prevalence of negative words at the beginning of the letter. We also find a significant positive association between this qualitative impression management and the use of abnormal accruals in earnings management. We propose sentiment analytics that can compensate for the strategic management of narrative structure and find that the proposed position weighted sentiment has more predictive power for the firm performance over the next year.},
  author       = {Boudt, Kris and Thewissen, James},
  issn         = {0046-3892},
  journal      = {FINANCIAL MANAGEMENT},
  keywords     = {EARNINGS MANAGEMENT,INFORMATION-CONTENT,SERIAL POSITION,CORPORATE,RECALL,TONE,LANGUAGE},
  language     = {eng},
  number       = {1},
  pages        = {77--115},
  title        = {Jockeying for position in CEO letters : impression management and sentiment analytics},
  url          = {http://dx.doi.org/10.1111/fima.12219},
  volume       = {48},
  year         = {2019},
}

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