Stepping across for social approval: Ties to independent foundations' boards after financial restatement

Lungeanu, Razvan; Paruchuri, Srikanth; Tsai, Wenpin

doi:10.1002/smj.2754

Cited by 25 publications

(18 citation statements)

References 90 publications

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“…As Gamache and McNamara () explain, LIWC contains predesigned and pre‐validated dictionaries of words measuring the positive and negative emotions within the text. LIWC is one of the several other text analysis tools used in the literature, having been increasingly adopted in strategic management research (Crilly, ; Kanze, Huang, Conley, & Higgins, ; Lungeanu, Paruchuri, & Tsai, ; Pan et al, 2018). Using this method, the authors find that negative media reactions to the announcement of a major acquisition is correlated with the degree to which the CEO and the firm engage in subsequent acquisition activity.…”

Section: Ceo Communication: Prior Theory and Methodsmentioning

confidence: 99%

Machine learning approaches to facial and text analysis: Discovering CEO oral communication styles

Choudhury¹,

Wang²,

Carlson³

et al. 2019

Strategic Management Journal

126

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Research Summary We demonstrate how a novel synthesis of three methods—(a) unsupervised topic modeling of text data to generate new measures of textual variance, (b) sentiment analysis of text data, and (c) supervised ML coding of facial images with a cutting‐edge convolutional neural network algorithm—can shed light on questions related to CEO oral communication. With videos and corresponding transcripts of interviews with emerging market CEOs, we use this synthesis of methods to discover five distinct communication styles that incorporate both verbal and nonverbal aspects of communication. Our data comprises interviews that represent unedited expressions and content, making them especially suitable as data sources for the measurement of an individual's communication style. We then perform a proof‐of‐concept analysis, correlating CEO communication styles to M&A outcomes, highlighting the value of combining text and videographic data to define styles. We also discuss the benefits of using our methods versus current research methods. Managerial Summary CEOs spend most of their time communicating to investors, customers, and partners with the aim of influencing these various stakeholders. To what extent though does their effectiveness as leaders depend on a mixture of what they say and how they say it? We use cutting‐edge machine learning approaches to measure a CEO's communication style, which can give clues about the major strategic decisions a CEO's firm must make. With a collection of video interviews with 61 organizational leaders from emerging markets, we use textual analysis and facial image expression recognition to code whether CEOs are “excitable,” “stern,” “dramatic,” “rambling,” and “melancholy” in their communication styles. As a proof‐of‐concept, we also show that CEOs who were more dramatic in expressing themselves were also less likely to oversee major acquisitions. Therefore, not only can CEO communication styles help predict a firm's ability to grow, adapt to change, and reallocate existing assets, styles can also be coded more intuitively by using our new method, representing a vast improvement over previous methods in both accessibility and interpretability.

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Section: Ceo Communication: Prior Theory and Methodsmentioning

confidence: 99%

Machine learning approaches to facial and text analysis: Discovering CEO oral communication styles

Choudhury¹,

Wang²,

Carlson³

et al. 2019

Strategic Management Journal

126

View full text Add to dashboard Cite

show abstract

“…In the limited research-to-date, researchers have found that CEOs who receive positive (negative) media attention can help (hurt) firm reputation (Love et al 2017); CEOs employ impression management differently when they lead stable versus unstable firms (Salancik and Meindl 1984); UE decision-makers consider potential partners' reputation when forming strategic alliances (Dollinger et al 1997); firms with strong brands pay their executives less, especially CEOs (versus other executives) and younger (versus older) executives (Tavassoli et al 2014); and that after engaging in misconduct, a stronger corporate reputation impacts CEO behavior (Lungeanu et al 2018). The last two studies are examples of research examining the impact of marketing strategy phenomena on UE outcomes rather than vice versa.…”

Section: Established Knowledge Across Marketing Strategy Domain Areasmentioning

confidence: 99%

Upper echelons research in marketing

Whitler

Liu

Krause

et al. 2020

J. of the Acad. Mark. Sci.

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Marketing scholars have recently embraced the study of the corporate upper echelons-the executives and board members atop the organizational hierarchy. However, management scholars have researched the upper echelons for decades, with frequent forays into the marketing strategy domain. As a result of progressing in two separate disciplines, the literature on marketing strategy and the upper echelons is fragmented and disjointed. We develop an organizing framework to review extant research and assess and synthesize the knowledge in the upper echelons marketing strategy domain. Our review covers the 14 most influential marketing and management journals from 1984 through February, 2020. Given the relative newness of this research within marketing, we develop a conceptual model fusing existing theory in the upper echelons and marketing strategy literatures, and use this to identify key blind spots and underdeveloped areas of knowledge caused by the two fields' independent evolutions. Finally, we also examine challenges associated with conducting research in this area and provide recommendations to help researchers and reviewers navigate these challenges to advance theory and practice.

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“…Importantly, social approval is an intuitive or gut reaction to firm actions based on the degree to which they induce positive affect (Bundy & Pfarrer, 2015). As such, scholars examining social approval commonly look to stakeholders’ positive sentiment to reflect their affective responses to firms and firm actions (e.g., Hubbard et al, 2018; Lungeanu et al, 2018). Following this approach, we build theory around positive stakeholder sentiment in response to the actions taken by essential firms to protect and promote their employees’ well-being immediately following the onset of the COVID-19 pandemic.…”

Section: Theorymentioning

confidence: 99%

Caring for their own: How firm actions to protect essential workers and CEO benevolence influenced stakeholder sentiment during the COVID-19 pandemic.

Steinbach¹,

Kautz²,

Korsgaard³

2021

Journal of Applied Psychology

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Whereas many workplaces shut down following the onset of the COVID-19 pandemic, many others in essential industries had to remain operational, thus exposing their employees to COVID-19's inherent dangers. These firms were pressed to take immediate action to protect their employees' safety and financial well-being. However, firms varied considerably in the degree to which they took action, and stakeholders appeared to take notice. Leveraging attribution theory, we build theory around the impact of firm actions to protect employee safety and compensation on stakeholder sentiment toward the firm. We further examined how firm leadership helped shape stakeholder sentiment by theorizing about the joint impact of actions with Chief Executive Officer (CEO) benevolence. We built a unique, multisourced data set and tested our theory on a sample of public firms in the consumer staples sector. Our longitudinal analysis of positive stakeholder sentiment expressed on social media demonstrated the importance of these immediate firm actions on sentiment in the initial months of the pandemic. Specifically, firm compensation actions were associated with a growth in positive sentiment over these months, particularly when made by CEOs with high benevolence, whereas firm safety actions led to growth in positive sentiment but only when made by CEOs with low benevolence. We discuss the implications of these findings for our understanding of firm actions and leadership at the onset of the COVID-19 pandemic.

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Stepping across for social approval: Ties to independent foundations' boards after financial restatement

Cited by 25 publications

References 90 publications

Machine learning approaches to facial and text analysis: Discovering CEO oral communication styles

Machine learning approaches to facial and text analysis: Discovering CEO oral communication styles

Upper echelons research in marketing

Caring for their own: How firm actions to protect essential workers and CEO benevolence influenced stakeholder sentiment during the COVID-19 pandemic.

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