Softer Lips Tell Sweeter Lies

10 Pages Posted: 7 Sep 2019

See all articles by Wolfgang Breuer

Wolfgang Breuer

RWTH Aachen University

Andreas Knetsch

RWTH Aachen University

Astrid Juliane Salzmann

RWTH Aachen University - Department of Finance

Date Written: September 2, 2019

Abstract

This study investigates the notion that women are perceived as more trustworthy than men in the context of abnormal release returns to 10-K filings. We find that female executives elicit more favorable stock market reactions when advertising their trustworthiness than their male counterparts. We address the issue of executive gender endogeneity by employing a propensity score matching and a difference-in-difference research design that compares the effects of male-to-female CEO transitions to male-to-male CEO transitions. However, we find no evidence that trust rhetoric from women executives is more sincere than that of man.

Keywords: Trust; Female Executives; Textual Analysis; Stock Market Reactions

JEL Classification: D53, D82, D84, G14, G41, G30, D91

Suggested Citation

Breuer, Wolfgang and Knetsch, Andreas and Salzmann, Astrid Juliane, Softer Lips Tell Sweeter Lies (September 2, 2019). Available at SSRN: https://ssrn.com/abstract=3447184 or http://dx.doi.org/10.2139/ssrn.3447184

Wolfgang Breuer

RWTH Aachen University ( email )

Templergraben 55
D-52056 Aachen, 52056
Germany

Andreas Knetsch (Contact Author)

RWTH Aachen University ( email )

Templergraben 55
52056 Aachen, 52056
Germany

Astrid Juliane Salzmann

RWTH Aachen University - Department of Finance ( email )

Templergraben 64
Aachen, 52056
Germany

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