Cheap talk? Strategy presentations as a form of chief executive officer impression management

Strategic Management Journal

Volumn 37, Issue 12, 2016, Pages 2413-2424

  Whittington, Richard ^a   Yakis Douglas, Basak ^a   Ahn, Kwangwon ^b  

^a UNIVERSITY OF OXFORD   (United Kingdom)

^b PEKING UNIVERSITY   (China)

Author keywords

event study methodology; impression management; new CEOs; open strategy; strategy presentations; voluntary disclosures

Indexed keywords

COSTS; FINANCIAL MARKETS;

EVENT STUDIES; IMPRESSION MANAGEMENT; NEW CEOS; OPEN STRATEGY; STRATEGY PRESENTATIONS; VOLUNTARY DISCLOSURES;

INVESTMENTS;

EID: 84960344123     PISSN: 01432095     EISSN: 10970266     Source Type: Journal    
DOI: 10.1002/smj.2482     Document Type: Article

References (64)

1. Almazan A, Banerji S, Motta AD. 2008. Attracting attention: cheap managerial talk and costly market monitoring. Journal of Finance 63(3): 1399–1436.
2. Bagnoli M, Levine S, Watts S. 2005a. Analyst estimation revision clusters and corporate events. Part I. Annals of Finance 1(3): 245–265.
3. Bagnoli M, Levine S, Watts S. 2005b. Analyst estimation revision clusters and corporate events. Part II. Annals of Finance 1(4): 379–393.
4. Beatty RP, Zajac EJ. 1987. CEO change and firm performance in large corporations: succession effects and manager effects. Strategic Management Journal 8(4): 305–317.
5. Brooks R, Johnson M, Su T. 1997. CEO presentations to financial analysts: much ado about nothing? Financial Practice and Education 7(2): 19–23.
6. Brown S, Warner J. 1985. Measuring security price performance. Journal of Financial Economics 8(3): 205–258.
7. Cannella AA, Shen W. 2001. So close and yet so far: promotion versus exit for CEO heirs apparent. Academy of Management Journal 44(2): 252–270.
8. Capron L, Pistre N. 2002. When do acquirers earn abnormal returns? Strategic Management Journal 23(9): 781–794.
9. Carpenter MA. 2002. The implications of strategy and social context for the relationship between top management team heterogeneity and firm performance. Strategic Management Journal 23(3): 275–284.
10. Clayton MC, Hartzell JC, Rosenberg J. 2005. The impact of CEO turnover on equity volatility. Journal of Business 78(5): 1779–1808.
11. Cohen J. 1988. Statistical Power for the Behavioral Sciences (2nd edn). Hillsdale, NJ: Lawrence Erlbaum.
12. Cohen BD, Dean TJ. 2005. Information asymmetry and investor valuation of IPOs: top management team legitimacy as a capital market signal. Strategic Management Journal 26(7): 683–690.
13. Elsbach KD, Sutton RI, Principe KE. 1998. Averting expected challenges through anticipatory impression management: a study of hospital billing. Organization Science 9(1): 68–86.
14. Eng LL, Mak YT. 2003. Corporate governance and voluntary disclosure. Journal of Accounting and Public Policy 22(4): 325–345.
15. Fanelli A, Misangyi VF, Tosi HL. 2009. In charisma we trust: the effects of CEO charismatic visions on securities analysts. Organization Science 20(6): 1011–1033.
16. Farrell J. 1987. Cheap talk, coordination, entry. RAND Journal of Economics 18(1): 34–39.
17. Farrell J, Rabin M. 1996. Cheap talk. Journal of Economic Perspectives 10(3): 103–118.
18. Ferreira D, Rezende M. 2007. Corporate strategy and information disclosure. RAND Journal of Economics 38(1): 164–184.
19. Finkelstein S, Hambrick DC. 1996. Strategic Leadership: Top Executives and their Effects on Organizations. West Educational Publishing: Minneapolis/St. Paul, MN.
20. Gabarro JJ. 1987. The Dynamics of Taking Charge. Harvard Business School Press: Boston, MA.
21. Glosten L, Milgrom P. 1985. Bid, ask, and transaction prices in a specialist market with heterogeneously informed traders. Journal of Financial Economics 13(1): 71–100.
22. Graffin SD, Carpenter MA, Boivie S. 2011. What's all that (strategic) noise? Anticipatory impression management in CEO succession. Strategic Management Journal 32(7): 748–770.
23. Graffin SD, Ward AJ. 2010. Certifications and reputation: determining the standard of desirability amidst uncertainty. Organization Science 21(2): 331–346.
24. Graham JR, Harvey CR, Rajgopal S. 2005. The economic implications of corporate financial reporting. Journal of Accounting and Economics 40(1): 3–73.
25. Griffin P. 2003. Got information? Investor response to form 10-K and form 10-Q EDGAR filings. Review of Accounting Studies 8(4): 433–460.
26. Gulati R, Lavie D, Singh H. 2009. The nature of partnering experience and the gains from alliances. Strategic Management Journal 30(11): 1213–1233.
27. Hair JF, Anderson RE, Tatham RL, Black WC. 1998. Multivariate Data Analysis with Readings (5th edn). Prentice Hall: Englewood Cliffs, NJ.
28. Hambrick DC, Finkelstein S. 1987. Managerial discretion: a bridge between polar views of organizational outcomes. Research in Organizational Behavior 9: 369–406.
29. Hayes AF, Krippendorff K. 2007. Answering the call for a standard reliability measure for coding data. Communication Methods and Measures 1: 77–89.
30. Healy P, Palepu K. 1995. The challenges of investor communication: the case of CUC International. Journal of Financial Economics 38(2): 111–140.
31. Healy P, Palepu K. 2001. Information asymmetry, corporate disclosure, and the capital markets: a review of the empirical disclosure literature. Journal of Accounting and Economics 31(1): 405–440.
32. Hutton A. 2005. Determinants of managerial earnings guidance prior to regulation fair disclosure and bias in analysts' earnings forecasts. Contemporary Accounting Research 22(4): 867–914.
33. Hutton A, Miller G, Skinner D. 2003. The role of supplementary statements with management earnings forecasts. Journal of Accounting Research 41(5): 867–890.
34. Kothari SP, Loutskina E, Nikolaev V. 2006. Agency theory of overvalued equity as an explanation for the accrual anomaly. CentER Discussion Paper Series No. 2006-103, MIT Sloan School of Management, Cambridge, MA.
35. Kothari SP, Shu S, Wysocki PD. 2009. Do managers withhold bad news? Journal of Accounting Research 47(1): 241–276.
36. Lee PM, James EH. 2007. “She”-e-os: gender effects and investor reactions to the announcements of top executive appointments. Strategic Management Journal 28(3): 227–241.
37. Leuz C, Verrecchia R. 2000. The economic consequences of increased disclosure. Journal of Accounting Research 38: 91–124.
38. MacKinlay A. 1997. Event studies in economics and finance. Journal of Economic Literature 35(1): 13–39.
39. Mazzola P, Gnan L, Lisi I. 2007. The information content of strategy presentations of Italian listed companies. Unpublished Working paper, IULM University, Milan, Italy.
40. McWilliams A, Siegel D. 1997. Event studies in management research: theoretical and empirical issues. Academy of Management Journal 40(3): 626–657.
41. Montgomery CA. 2008. Putting leadership back into strategy. Harvard Business Review 86(1): 54–60.
42. Murray EJ, Richardson PR. 2003. Fast forward: a new framework for rapid organizational change. Ivey Business Journal 67(6): 1–5.
43. Narayanan VK, Pinches GE, Kelm KM, Lander DM. 2000. The influence of voluntarily disclosed qualitative information. Strategic Management Journal 21(9): 707–722.
44. Neff TJ, Citrin JM. 2005. You're in Charge: Now What? Crown Business: New York.
45. Ofek E, Turut Ö. 2013. Vaporware, suddenware, and trueware: new product preannouncements under market uncertainty. Marketing Science 32(2): 342–355.
46. Oler DK, Harrison JS, Allen MR. 2008. The danger of misinterpreting short-window event study findings in strategic management research: an empirical illustration using horizontal acquisitions. Strategic Organization 6(2): 151–184.
47. Porter ME, Lorsch JW, Nohria N. 2004. Seven surprises for new CEOs. Harvard Business Review 82(10): 62–75.
48. Rindova VP, Becerra M, Contardo I. 2004. Enacting competitive wars: competitive activity, language games, and market consequences. Academy of Management Review 29(4): 670–686.
49. Sanders G, Boivie S. 2004. Sorting things out: valuation of new firms in uncertain markets. Strategic Management Journal 25(2): 167–186.
50. Schijven M, Hitt MA. 2012. The vicarious wisdom of crowds: toward a behavioral perspective on investor reactions to acquisition announcements. Strategic Management Journal 33(11): 1247–1268.
51. Spender JC. 1996. Making knowledge the basis of a dynamic theory of the firm. Strategic Management Journal 17(S2): 45–62.
52. Tian J, Haleblian J, Rajagopalan N. 2011. The effects of board human and social capital on investor reactions to new CEO selection. Strategic Management Journal 32(7): 731–747.
53. Virany B, Tushman ML, Romanelli E. 1992. Executive succession and organizational outcomes in turbulent environments: an organizational learning approach. Organization Science 3(1): 72–91.
54. Washburn M, Bromiley P. 2014. Managers and analysts: an examination of mutual influence. Academy of Management Journal 57(3): 849–869.
55. Webb K, Cahan S, Sun J. 2008. The effect of globalization and legal environment on voluntary disclosure. International Journal of Accounting 43(3): 219–245.
56. Weng DH, Lin ZJ. 2012. Beyond CEO tenure: the effect of CEO newness on strategic changes. Journal of Management 40(7): 2009–2032.
57. Westphal JD, Graebner ME. 2010. A matter of appearances: how corporate leaders manage the impressions of financial analysts about the conduct of their boards. Academy of Management Journal 53(1): 15–44.
58. Whittington R, Cailluet L, Yakis-Douglas B. 2011. Opening strategy: evolution of a precarious profession. British Journal of Management 22(3): 341–564.
59. Whittington R, Yakis-Douglas B. 2012. Strategic disclosure strategy as a form of reputation management. In Handbook of Corporate Reputation, Pollock T, Barnett M (eds). Oxford University Press: Oxford, UK; 402–419.
60. Wiersema MF, Zhang Y. 2011. CEO dismissal: the role of investment analysts. Strategic Management Journal 32(11): 1161–1182.
61. Zenger T. 2013. Strategy: the uniqueness challenge. Harvard Business Review 91(11): 52–59.
62. Zhang Y, Rajagopalan N. 2004. When the known devil is better than an unknown god: an empirical study of the antecedents and consequences of relay CEO successions. Academy of Management Journal 47(4): 483–500.
63. Zhang Y, Rajagopalan N. 2010. Once an outsider, always an outsider? CEO origin, strategic change, and firm performance. Strategic Management Journal 31(3): 334–346.
64. Zuckerman EW. 2000. Focusing the corporate product: securities analysts and de-diversification. Administrative Science Quarterly 45(3): 591–619.