Session 214

CEOs and Leadership

Track O

Date: Monday, October 8, 2012


Time: 13:30 – 14:45

Common Ground

Room: Club H


  • Craig Crossland, University of Notre Dame

Title: Being Too Positive? The Effect of Positive Emotions on Stock Market Reaction


  • Wei Guo, Hong Kong Polytechnic University

Abstract: I measure positive emotions expressed by executives during their presentations at conferences by analyzing the verbatim transcripts of their presentations. I hypothesize and find that the use of more positive emotion words by executives to express positive emotions is positively related to contemporaneous stock returns. In addition, the positive stock reaction to the use of positive emotion words is stronger when it is used following a negative earnings surprise and weaker when it is used following a positive earnings surprise. This study provides new and important insights into the contingencies that influence the effect of managerial language on investors, thereby contributing to the emerging literature on stakeholder management and language effect.

Title: Can\'t Buy Me Love? How Charismatic CEOs Curry Favor with Firm Stakeholders


  • Adam Wowak, University of Notre Dame
  • Mathias Arrfelt, Arizona State University

Abstract: Charismatic CEOs are thought to raise the performance of those around them, in particular by engendering excitement and motivation among followers. Yet much remains unknown about how charismatic CEOs are able to build their influence over stakeholders inside and outside the firm. We propose that charismatic CEOs supplement their charms with instrumental behaviors that help reinforce their personas. Specifically, we argue that charismatic CEOs engage in certain behaviors that serve to bolster the influence they hold with stakeholders both inside and outside the firm. To test our theory, we employ a novel historiometric approach in which several hundred trained coders use publicly available information to assess CEO charisma. Preliminary results support several of our hypotheses.

Title: Façades of Rigor? The Spillover of Top Executive Insecurity into Team Construction, Decision-Making Process, and Strategic Conformity


  • Michael Mannor, University of Notre Dame
  • Viva Bartkus, University of Notre Dame

Abstract: Despite advances, a lingering criticism of work on top executives has been that we often study easily observable characteristics rather than deeper psychological differences that drive behavior. In this research we focus our attention on a rarely studied dimension of executive character that may provide insight into the deeper motivations of leaders. Specifically, we study how top executive insecurity can spill over into how executives build their teams and structure decision processes. To test our ideas, we conducted an empirical study of 180 decision processes used by 107 top executives in medium to large organizations. Our research was conducted in three phases: an in-person interview with each top executive, surveys for their spouse and assistant, and an online survey for members of their decision-making team.

Title: Narcissists Can Save the World: CEO Characteristics and Corporate Social Responsibility


  • Federico Aime, Oklahoma State University
  • Oleg Petrenko, Texas Tech University
  • Aaron Hill, Oklahoma State University
  • Jason Ridge, University of Arkansas

Abstract: We advance an agency argument that conceptualizes corporate social responsibility (CSR) at least partially as directed to advancing and reinforcing a CEOs own image and visibility. We hypothesize that CEO narcissism will be positively related to CSR because narcissistic CEOs will be more attracted to the attention in the media and positive praise from employees and the community associated with CSR. Also, we argue that a CEO’s core self- evaluation negatively moderates that relationship. We test our hypotheses on a sample of Fortune 500 CEOs. Our results show that narcissistic CEOs support higher levels of CSR in their organizations and that CEO core self-evaluations negatively moderates the relationship between CEO narcissism and CSR.

Title: Rhetorical Boomerangs: CEOs, Metaphors, and Analysts\' Evaluations


  • Alexander C. Wessels, University of Erlangen-Nuremberg
  • Andreas König, University of Erlangen-Nuremberg
  • Jan Mammen, University of Erlangen-Nuremberg
  • Joanna Walton, University of Erlangen-Nuremberg

Abstract: We investigate how variance in CEOs’ metaphorical communication behavior (CMCB) – i.e., CEOs’ individual tendency to verbally convey thoughts and feelings by employing expressions that view or express one object, idea, or issue in terms of another object, idea, or issue – affects two focal dimensions of securities analysts’ evaluations: favorability of analyst recommendations and analyst forecast tendency. We analyze conference calls of 58 CEOs in the U.S. pharmaceutical industry between 2002 and 2010 and find that firms led by CEOs scoring high in CMCB receive significantly less favorable analyst recommendations than firms with CEOs scoring low in CMCB. Moreover, CMCB is associated with analysts’ tendency to underestimate firm earnings. As such, our study adds to ongoing conversations in the strategic management literature and executive communication studies.

Title: The Double-Edged Sword of Top Executive Self-Awareness: Purposeful vs. Paralyzed Decision-Making Processes


  • Viva Bartkus, University of Notre Dame

Abstract: Although self-awareness is typically described as a virtue, in this work we highlight a set of tensions through which top executive self-awareness can have both positive and negative influences on organizational decision-making. We first focus on how self-awareness impacts information search, the rigor of internal debate, and the tendency to break free of the status quo. However, increasingly self-aware executives may also foist dysfunction onto their teams and delay critical decision-making. To test our ideas, we conducted an empirical study of 180 decision processes used by 107 top executives in medium to large organizations. Our research was conducted in three phases: an in-person interview with each top executive, surveys for their spouse and assistant, and an online survey for members of their decision-making team.

All Sessions in Track O...

Sun: 08:00 – 09:15
Session 119: Strategic Leadership
Sun: 09:30 – 10:45
Session 120: Corporate Governance
Sun: 11:15 – 12:30
Session 122: Strategic Leadership and Corporate Governance Complementarities: Why we Are an IG
Sun: 15:15 – 16:30
Session 107: The Benefits of Experience: Vicarious and Otherwise
Mon: 08:00 – 09:15
Session 106: Why do Firms do Bad Things and What Do We Know about It?
Mon: 09:30 – 10:45
Session 103: Reputation: Organizational and Individual Dimensions
Mon: 13:30 – 14:45
Session 112: CEO and TMT Turnover: Firm Implications
Session 214: CEOs and Leadership
Mon: 16:30 – 17:45
Session 113: Large Shareholders are Doing it for Themselves
Tue: 08:00 – 09:15
Session 115: Board Member Characteristics and Board Diversity
Session 137: CEO Human Capital: Take a Little off the Top
Session 254: Capital Markets and Efficiency
Tue: 11:00 – 12:15
Session 111: Why Boards Look the Way They Do: Director Selection
Session 117: Heterogeneous Owner Types and their Influence
Tue: 14:15 – 15:30
Session 108: CEOs Matter, Don\'t They?
Session 116: Discretion and Compensation
Tue: 15:45 – 17:00
Session 114: Adoption of a Practice and its Implications
Tue: 17:30 – 18:45
Session 118: The TMT as a Unit
Session 215: CEO Personality and Characteristics Influencing Decision Making

Strategic Management Society