Are stakeholders listening? An examination of CEO podcast appearances

Abstract

Extant research suggests CEOs prefer communication channels that reach more stakeholders in a timely fashion. In recent times, however, a growing number of CEOs are appearing on podcasts, which are arguably less timely and reach smaller audiences. We examine why CEOs allocate their time, a scarce and valuable resource, to podcasts and whether these appearances have implications for market participants. CEO podcast appearances are associated with firms that have a greater consumer focus and corporate social responsibility activities, and CEOs with stronger reputation incentives. These podcast interviews also appear to complement the firms’ information environments, as appearances are more likely around earnings announcements, media releases, and regulatory filings. CEO podcast appearances increase attention to the firm and the CEO. Furthermore, despite the unlikely presence of material nonpublic information in podcasts, CEO appearances spur increased trading, particularly by retail investors.

Keywords: Podcasts, CEO, Investor Attention