Softer Lips Tell Sweeter Lies
10 Pages Posted: 7 Sep 2019
Date Written: September 2, 2019
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: Suggested Citation