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

Whittington, Richard, Yakis-Douglas, Basak and Ahn, Kwangwon (2017) Cheap talk? Strategy presentations as a form of chief executive officer impression management. Strategic Management Journal.

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Abstract

We develop and test a set of hypotheses on investors’ reactions to a specific form of impression management, public presentations of overall strategy by Chief Executive Officers (CEOs). Contrary to expectations from a ‘cheap talk’ perspective, we suggest that such strategy presentations convey valuable information to investors, especially in conditions of heightened information asymmetry associated with varying types of new CEOs. Broad empirical support for our theoretical arguments is shown in a sample of strategy presentations carried out by NYSE and NASDAQ listed organizations over 10 years. Our research contributes to literature on new CEOs and impression management. We draw out implications both for management and for further research.

Item Type: Article
Keywords: Strategy; impression management; new CEOs; strategy presentations; event study methodology; voluntary disclosures; open strategy
Subject(s): Strategy
Date Deposited: 24 Mar 2016 11:45
Date of author-version deposit: 11 March 2016
Last Modified: 12 Jul 2017 11:09
Funders: n/a
URI: http://eureka.sbs.ox.ac.uk/id/eprint/6097

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