@article{fb122e7fa60f48cd9eab577d4caf71ad,
title = "Using video to disclose forward-looking information: the effect of nonverbal cues on investors{\textquoteright} judgments",
abstract = "We conduct two experiments to examine how investors react to nonverbal cues of certainty as displayed by a CEO communicating forward-looking information via the relatively new and emerging medium of video. Results of the first experiment suggest that, at least for the setting we examine, investors react more negatively (do not react more positively) to a video disclosure when the CEO displays nonverbal cues of uncertainty (certainty), relative to the same disclosure delivered via audio or written text. A second experiment reveals that the lack of a positive reaction to the certain CEO in the video may be due to investors{\textquoteright} belief that the CEO has incentives to convey certainty via nonverbal cues. Indeed, even a subsequent good-news realization—which should add credibility to the CEO{\textquoteright}s certainty cues—does not change this perception. Our study has implications for firms considering video as a medium for disclosure.",
keywords = "Certainty, Forward-looking disclosures, Nonverbal cues, Video",
author = "Cade, {Nicole L.} and Lisa Koonce and Mendoza, {Kim I.}",
note = "Funding Information: The authors thank Aysa Dordzhieva, Michael Durney, Harry Evans, Laura Feustel, Paul Fischer (editor), Ryan Guggenmos, Ling Harris, Kathryn Holmstrom, Bright Hong, Hyun Hwang, Eathan LaMothe, Volker Laux, Kun Liu, Kristi Rennekamp, Kathy Rupar, Shankar Venkataraman, Ronghuo Zheng, Aaron Zimbleman, two anonymous reviewers, and workshop participants at Cornell University, Georgia Institute of Technology, and University of South Carolina for their helpful comments and suggestions. We appreciate the research assistance of Laura Savoie. Lisa Koonce gratefully acknowledges funding from the Deloitte Foundation. Funding Information: The authors thank Aysa Dordzhieva, Michael Durney, Harry Evans, Laura Feustel, Paul Fischer (editor), Ryan Guggenmos, Ling Harris, Kathryn Holmstrom, Bright Hong, Hyun Hwang, Eathan LaMothe, Volker Laux, Kun Liu, Kristi Rennekamp, Kathy Rupar, Shankar Venkataraman, Ronghuo Zheng, Aaron Zimbleman, two anonymous reviewers, and workshop participants at Cornell University, Georgia Institute of Technology, and University of South Carolina for their helpful comments and suggestions. We appreciate the research assistance of Laura Savoie. Lisa Koonce gratefully acknowledges funding from the Deloitte Foundation. Publisher Copyright: {\textcopyright} 2020, Springer Science+Business Media, LLC, part of Springer Nature.",
year = "2020",
month = dec,
day = "1",
doi = "10.1007/s11142-020-09539-8",
language = "English (US)",
volume = "25",
pages = "1444--1474",
journal = "Review of Accounting Studies",
issn = "1380-6653",
publisher = "Springer",
number = "4",
}