Are investors listening? An examination of CEO podcast appearances

58 Pages Posted: 11 May 2022 Last revised: 9 Sep 2022

See all articles by Nathan T. Marshall

Nathan T. Marshall

University of Colorado at Boulder - Department of Accounting

Jackie Wegner

University of Colorado at Boulder, Leeds School of Business, Department of Accounting, Students

Sarah L. C. Zechman

University of Colorado at Boulder - Leeds School of Business

Date Written: September 8, 2022

Abstract

While a vast stream of research explores the market consequences of firm communication, it generally focuses on channels where material non-public information can legally be disclosed (i.e., channels compliant with Regulation FD). In recent times, however, a growing number of CEOs are communicating in a channel where this is not necessarily the case: podcasts. We find that CEO podcast appearances contribute to market activity, both in terms of share turnover and absolute returns. Because these pervasive market consequences are seemingly at odds with the non-Reg FD compliant nature of podcasts, we also examine why investors might listen and trade. We predict and find evidence supporting three non-mutually exclusive hypotheses: CEO podcast appearances (i) lower processing costs; (ii) heighten investor focus on company products or brands; and (iii) increase manager visibility. These findings provide important insights on a rising communication channel, podcasts, and demonstrate that non-Reg-FD channels can also have important market consequences.

Keywords: Podcasts, CEO, Non-Reg-FD disclosure, Investor Trading

Suggested Citation

Marshall, Nathan T. and Wegner, Jackie and Zechman, Sarah L. C., Are investors listening? An examination of CEO podcast appearances (September 8, 2022). Available at SSRN: https://ssrn.com/abstract=4104922 or http://dx.doi.org/10.2139/ssrn.4104922

Nathan T. Marshall (Contact Author)

University of Colorado at Boulder - Department of Accounting ( email )

419 UCB
Boulder, CO 80309-0419
United States

Jackie Wegner

University of Colorado at Boulder, Leeds School of Business, Department of Accounting, Students ( email )

419 UCB
Boulder, CO 80309-0419
United States

Sarah L. C. Zechman

University of Colorado at Boulder - Leeds School of Business ( email )

Boulder, CO 80309-0419
United States

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