How the Use of Temporal Immediacy and Video Conference Calls Jointly Impact Investors’ Willingness to Invest

47 Pages Posted: 5 Nov 2020 Last revised: 13 Dec 2022

See all articles by Scott C. Jackson

Scott C. Jackson

University of South Dakota - Beacom School of Business

M. David Piercey

University of Massachusetts Amherst

Elaine Wang

University of Massachusetts Amherst

Date Written: October 4, 2020

Abstract

CEOs can alter the temporal immediacy of their language in describing firm performance. For example, using temporally immediate language to describe good news makes it seem more immediate, and using temporally nonimmediate language to describe bad news makes it seem more distant. In two experiments, we examine whether a CEO’s effective use of temporal immediacy impacts investors’ willingness to invest. Furthermore, as audio/video communication of conference calls has become more popular, our study also investigates this linguistic effect in text, audio, and video formats. We predict and find that investors are more likely to increase investment willingness when managers effectively use temporal immediacy to describe positive news and temporal non-immediacy to describe negative news than when they do not. However, such an effect only exists with text but not audio or video communication. Our findings have important implications for investors, managers, and regulators.

Keywords: Temporal Immediacy, Communication Mode, Language, Nonverbal Behavior, Construal Level Theory

JEL Classification: D15, D81, D83, D91, G41, M41

Suggested Citation

Jackson, Scott and Piercey, M. David and Wang, Elaine (Ying), How the Use of Temporal Immediacy and Video Conference Calls Jointly Impact Investors’ Willingness to Invest (October 4, 2020). Available at SSRN: https://ssrn.com/abstract=3705032 or http://dx.doi.org/10.2139/ssrn.3705032

Scott Jackson (Contact Author)

University of South Dakota - Beacom School of Business ( email )

414 East Clark Street
Vermillion, SD 57069
United States

M. David Piercey

University of Massachusetts Amherst ( email )

Isenberg School of Management
121 Presidents Drive
Amherst, MA 01003
United States

Elaine (Ying) Wang

University of Massachusetts Amherst ( email )

Amherst, MA 01003-4910
United States
413-545-7613 (Phone)

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