Companies have better financial performance when their CEO is an optimistic type who tends to see the glass as half-full, according to a study from the University of British Columbia’s Sauder School of Business.
Researchers analyzed the language used in transcripts of earnings reports, but excluded instances where positive language was being used strategically, for instance when equity offerings or mergers and acquisitions were being announced.
They found that that companies whose CEOs habitually used positive language performed better financially and were more likely to see their stock price rise.
The researchers found that CEOs who began their career in a recession were less likely to use optimistic language, and that male CEOs were more likely to be positive than women. Managers who are involved in a charity are also more likely to be more optimistic.
@jenstden
