Language Style Matching and CFO Turnover

51 Pages Posted: 3 Jun 2021

See all articles by Yongqiang Chu

Yongqiang Chu

Belk College of Business, UNC Charlotte

Angela Xia Liu

UNC Charlotte

Date Written: June 3, 2021

Abstract

Analyzing the language styles of top executives using conference call transcripts, we find that the language style matching between the CEO and the CFO can predict CFO turnover. Using the CEO-CFO pair fixed effects, we find that the mimicry component of language style matching is negatively associated with CFO turnover. We also find that the effect is mitigated by better corporate governance mechanisms, suggesting that corporate decisions driven by social interactions could be a source of agency costs. The effect is also weaker for CFOs appointed by the current CEO.

Keywords: Language Style Matching, CFO Turnover, CEO Turnover, Governance, Social Interaction

JEL Classification: D91, G39, G41, Z13

Suggested Citation

Chu, Yongqiang and Liu, Angela Xia, Language Style Matching and CFO Turnover (June 3, 2021). Available at SSRN: https://ssrn.com/abstract=3859439 or http://dx.doi.org/10.2139/ssrn.3859439

Yongqiang Chu (Contact Author)

Belk College of Business, UNC Charlotte ( email )

9201 University City Boulevard
Charlotte, NC 28223
United States
7046877695 (Phone)

Angela Xia Liu

UNC Charlotte ( email )

7046871794 (Phone)
7046871794 (Fax)

HOME PAGE: http://https://belkcollege.uncc.edu/directory/angela-xia-liu

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