Research Interests: Voluntary Disclosure, Information Intermediaries, Textual Analysis
The Impact of Media Coverage on Voluntary Disclosure (Job Market Paper)
Abstract: I examine whether and how media coverage affects voluntary disclosure decisions. Controlling for firm characteristics including past disclosure behavior, I find that prior media coverage is positively associated with both the likelihood of issuing management guidance and the quantity of guidance issued. The relation between media coverage and guidance is stronger for articles that purely disseminate information than articles that provide additional commentary, and is strongly associated with the presence of institutional investors, consistent with the media increasing investor demand for disclosure. Firms with more media coverage are also significantly more likely to hold earnings conference calls, speak more during conference calls, and issue more press releases, which suggests that media coverage has an impact across multiple voluntary disclosure channels. My study suggests that media coverage affects the demand for public disclosure and provides new insights into the influence of the media on manager behavior.
Executive Extraversion: Career and Firm Outcomes, with T. Clifton Green and Russell Jame. Resubmitted to The Accounting Review, (1st Round Revise and Resubmit).
Abstract: Psychology research identifies extraversion as the personality trait most closely associated with leadership emergence. We examine executive extraversion, as measured by speech patterns during conference calls, and find extraverts experience significant career benefits. Controlling for executive and firm characteristics, including firm fixed effects, we find that extraverted CEOs and CFOs earn 6-9% higher salaries. Moreover, extraverts become top executives at a younger age, are less likely to experience job turnover, and extraverted CFOs are more likely to be promoted to CEO. Executive extraversion is also linked with firm outcomes. Analyzing a sample of manager transitions, we find that increases in CEO extraversion are associated with improvements in sales growth, revenue efficiency, and investor recognition. Further, extraverted CEOs are associated with higher acquisition announcement returns. Our findings highlight the role of personality traits in explaining executive career and firm outcomes.