The effects of CEOs’ Linguistic Abstraction on Financial Analysts’ Performance Forecasts

• DOI: 10.5465/ambpp.2017.14595abstract
• Publication Date: 2017-11-01T17:13:23Z
• Authors: Jean-Nicolas Reyt; MaryJane Rabier
• Keywords: Abstraction

Based on Construal Level Theory, we hypothesize that CEOs who speak abstractly are more likely to be perceived as visionary than concretely, resulting in favorable perceptions about future performance by financial analysts. In a study based large dataset of conference calls and laboratory experiment assesses underlying mechanisms, find construal level is associated with greater vision, which turn leads forecasts. Implications for research practice discussed.