The Voice of Risk: Wall Street CEOS Vocal Masculinity and Financial Crisis in 2008
49 Pages Posted: 6 Nov 2019
Date Written: January 23, 2018
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: Suggested Citation