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Linguistic Differences Between Successful and Non-Successful CEOs During the Financial Crisis

Author

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  • Josef Scheuerlein

    (Department of Economics, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic)

  • Helena Chládková

    (Department of Management, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic)

Abstract

The present study represents an important attempt to explore some of the rhetorical aspects of effective leadership. The main purpose is to investigate possible linguistic differences between 104 effective and non-effective CEOs during the Financial Crisis (years 2008 and 2009) - using language and company performance as predictor variables. The word usage of the top and bottom 25 % of CEOs from the S and P500 within their corresponding letters to shareholders were analysed via the LIWC2015 quantitative content analysis software. The main focus is on the following linguistic markers: use of a) present achievement -, b) present power -, c) present risk -, d) emotionality -, e) present positive work - and f) visionary words. The results revealed that successful and non-successful CEOs use language equally, indicating that both also have the same leadership attributes. Our findings highlight the important role which communication plays in the leadership process, as well as, leadership effectiveness.

Suggested Citation

  • Josef Scheuerlein & Helena Chládková, 2019. "Linguistic Differences Between Successful and Non-Successful CEOs During the Financial Crisis," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 67(2), pages 583-595.
    • Handle: RePEc:mup:actaun:actaun_2019067020583
    DOI: 10.11118/actaun201967020583
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    References listed on IDEAS

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    1. Angela K. Davis & Jeremy M. Piger & Lisa M. Sedor, 2012. "Beyond the Numbers: Measuring the Information Content of Earnings Press Release Language," Contemporary Accounting Research, John Wiley & Sons, vol. 29(3), pages 845-868, September.
    2. Graham, John R. & Harvey, Campbell R. & Puri, Manju, 2013. "Managerial attitudes and corporate actions," Journal of Financial Economics, Elsevier, vol. 109(1), pages 103-121.
    3. Mark Clatworthy & Michael Jones, 2003. "Financial reporting of good news and bad news: evidence from accounting narratives," Accounting and Business Research, Taylor & Francis Journals, vol. 33(3), pages 171-185.
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