ANALYST FLATTERY, CEO NARCISSISM, AND CEO COMMUNICATION SPECIFICITY
Schill AK, Boutalikakis A, Hawighorst F, Graf-Vlachy L, König A (2022)
Publication Type: Conference contribution
Publication year: 2022
Journal
Publisher: Academy of Management
Book Volume: 2022
Conference Proceedings Title: Academy of Management Annual Meeting Proceedings
Event location: Seattle, [state} WA, USA
Abstract
We study how securities analysts’ use of flattery toward a CEO affects the degree to which that CEO communicates with higher specificity, rather than vaguely. CEO communication specificity is important for analysts as it substantially facilitates their work. However, CEOs might have little incentive to communicate with high specificity as it narrows CEOs’ strategic discretion. We argue that flattery-a ubiquitous social influencing behavior-enables analysts to render CEOs more likely to overcome their preference for vague communication because it invokes norms of reciprocity in the CEO and enhances the CEO’s self-esteem. Ultimately, the more an analyst flatters a CEO, the greater that CEO’s communication specificity. Moreover, integrating CEO narcissism research, we argue that analyst flattery provides “narcissistic supply” such that the positive effect of analyst flattery on CEO communication specificity increases to the extent of the focal CEO’s narcissism. Data from 2,159 dyads of analyst questions and CEO answers in quarterly earnings calls of U.S. hard- and software as well as pharmaceutical firms preliminarily support our hypotheses. Our theorizing and findings introduce a novel outside-in perspective of social influencing mechanisms-particularly flattery-at the executives/capital-markets interface. It also answers strategic leadership scholars’ calls to illuminate the “relational black box” of CEOs’ interactions with external stakeholders.
Involved external institutions
Germany (DE)How to cite
APA:
Schill, A.K., Boutalikakis, A., Hawighorst, F., Graf-Vlachy, L., & König, A. (2022). ANALYST FLATTERY, CEO NARCISSISM, AND CEO COMMUNICATION SPECIFICITY. In Sonia Taneja (Eds.), Academy of Management Annual Meeting Proceedings. Seattle, [state} WA, USA: Academy of Management.
MLA:
Schill, Ann Kathrin, et al. "ANALYST FLATTERY, CEO NARCISSISM, AND CEO COMMUNICATION SPECIFICITY." Proceedings of the 82nd Annual Meeting of the Academy of Management, AOM 2022, Seattle, [state} WA, USA Ed. Sonia Taneja, Academy of Management, 2022.
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