Work

CEO environmental communication, speech acts, and firm value

Year: 2026

Type: article

Abstract: Signaling theory predicts that communication, such as by CEOs, might complement observable environmental engagement by a firm, by reducing information asymmetry. Yet it remains unclear whether firms with stronger environmental engagement communicate more about these efforts and the potential implications for firm value. To analyze 14,523 firm-quarter earnings call Q&A sessions held by 364 publicly listed firms between 2007 and 2022, the current research measures CEO communication about firm environmental engagement and the communicative intent behind such communication by combining MSCI Environmental Pillar Scores, Compustat data, and a fine-tuned DeBERTa model. Firms with stronger environmental engagement communicate less, rather than more, about their efforts during earnings call Q&A sessions. Yet CEO communication about firm environmental engagement can be positively associated with firm value, depending on the communicative intent the CEO indicates, such that assertive and directive speech maintain this positive association, but expressive and commissive speech acts are negatively associated with firm value.

Source: Journal of the Academy of Marketing Science

DOI: 10.1007/s11747-026-01221-w

Authors: Hai-Anh Tran, Stephan Ludwig, Bach Nguyen, Charles H. Noble, Dhruv Grewal

Institutions: University of Manchester, Monash University, University of Exeter, University of Tennessee at Knoxville, Babson College

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $4,790

OpenAlex ID: W7225802537