The Voice of Risk: Wall Street CEOS Vocal Masculinity and Financial Crisis in 2008

49 Pages Posted: 6 Nov 2019

See all articles by Min Jung Kang

Min Jung Kang

University of Michigan at Flint - School of Management

Y. Han (Andy) Kim

Sungkyunkwan University

Date Written: January 23, 2018

Abstract

Masculinity driven culture of Wall Street has been criticized as one of the worst culprits that caused the global financial crisis in 2008. Using digital voice pitch analysis of male Wall Street CEO interviews on CNBC during 2008~2009, we find that the CEOs with lower voice pitch (1) managed riskier firms; (2) received high equity compensation; (3) were more likely to be fired after financial crisis; (4) were replaced by higher voice pitched CEOs; and (5) repaid the TARP money faster, which enabled them to exercise option compensations back again.

Keywords: voice pitch, financial crisis, testosterone, CEO turnover, TARP, overconfidence

JEL Classification: G01; G02; G29

Suggested Citation

Kang, Min Jung and Kim, Y. Han (Andy), The Voice of Risk: Wall Street CEOS Vocal Masculinity and Financial Crisis in 2008 (January 23, 2018). Asian Finance Association (AsianFA) 2018 Conference. Available at SSRN: https://ssrn.com/abstract=3107637

Min Jung Kang

University of Michigan at Flint - School of Management ( email )

303 E. Kearsley Street
Flint, MI 48502
United States

Y. Han (Andy) Kim (Contact Author)

Sungkyunkwan University ( email )

422 School of Business
25-2 SungKyunKwan-Ro, Jongno-ju
Seoul, 110-745
Korea, Republic of (South Korea)
+82-2-760-0622 (Phone)
+82-2-760-0622 (Fax)

HOME PAGE: http://https://sites.google.com/site/andyyhankim/

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