Abstract:We examine how CEOs can facilitate the development of investor trust that helps mitigate the effects of negative information. Results from an experiment show that investors trust the CEO more and are more willing to invest in the firm when the CEO communicates firm news followed by a negative earnings surprise through a personal Twitter account than when the news and surprise comes from the CEO via a website or from the firm's Investor Relations Twitter account or website. A follow-up experiment shows that rep… Show more
“…) . ( Blankespoor et al, 2014;Lee et al, 2015 (Blankespoor et al, 2014;Debreceny et al, 2017;Elliott et al, 2018;National (Investor (Relations Institute, 2013;Prokofieva,2015 (Farrell et al, (2002) .…”