AAA Spark Meeting of the Regions

Impact Of CEO Self-Disclosure On Investor Judgement

• In Event: DSFI/SE - Session 4 (Experimental)

Abstract

This study investigates whether and how CEO self-disclosure on social media influences investors’ willingness to invest following a negative financial event. We conduct a 1×3 between-subjects experiment, where we manipulate a CEO’s self-disclosure strategy (no self-disclosure vs. positive self-disclosure vs. positive and negative self-disclosure). Results indicate that investors react more positively to a negative financial event when the CEO offers positive personal experiences on social media than when the CEO does not offer any personal information. We also provide preliminary evidence that a CEO’s negative self-disclosure may negatively impact investors’ perception of the firm. In supplemental analyses, we find that the impact of CEO disclosure strategy on investment willingness depends on the follower’s gender.

Authors

• Suzanne Mullinnix, AAMVA

• Peina Liu, Georgia Institute of Technology

• Katarzyna K. Rupar, Georgia Institute of Technology