Executives' use of emotional language and investor reactions

Wei Guo

Research output: Chapter in book / Conference proceedingChapter in an edited book (as author)Academic researchpeer-review

2 Citations (Scopus)


Drawing on theories from social judgment and persuasion, this chapter proposes that investors will be sensitive to the use of emotional language by top executives in their communication. In addition, the effect of emotional language on investors will depend on investors' prior beliefs about the firm. Using a sample of 8,990 transcripts of presentations by executives of 632 organizations at investor conferences between 2004 and 2010, results support the prediction that executives' use of emotional language has a significant influence on investors and that different ways of expressing emotion have differential effects on investor judgment. Moreover, the effect of emotional language is stronger when the firm's uncertainty level is high and growth prospect is low. The results provide insights into how organizations can use language strategically to manage their relationships with stock investors, thereby contributing to a growing literature on symbolic management of organization.
Original languageEnglish
Title of host publicationCommunication and Language Analysis in the Corporate World
PublisherIGI Global
Number of pages18
ISBN (Electronic)9781466650008
ISBN (Print)1466649992, 9781466649996
Publication statusPublished - 31 Jan 2014

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)
  • General Business,Management and Accounting


Dive into the research topics of 'Executives' use of emotional language and investor reactions'. Together they form a unique fingerprint.

Cite this