This paper examines which method is more effective in capturing investor attention, considering that investors have limited attention and firms utilize various methods to disclose information. Specifically, by comparing oral and written conveyance methods, I find that information updates through oral communication lead to significantly greater stock price reactions than written communication. Moreover, while oral updates with a negative tone prompt a strongly negative market reaction, the market reaction to the tone of written communications is negligible. Using the COVID-19 pandemic setting to test “social interaction” as the main channel for the distinct announcement effects, I show that investor attention is greater during in-person meetings than virtual and hybrid alternatives, underscoring the importance of real-time feedback and salience. My findings highlight the effectiveness of oral communication over written communication, emphasizing the role of real-time audience interaction in fostering improved information processing.

-Presentations: University of Missouri-Columbia 2024

This paper examines how firms adjust their corporate culture messaging in response to nationwide U.S. political shifts. We assess cultural values of innovation, integrity, quality, respect, and teamwork reflected in corporate earnings calls. Significant changes in corporate culture messaging dynamics occur after an increase in partisan polarization post-2010: there are fewer mentions of all cultural aspects across both likely-Republican and likely-Democrat firms, except sentiment, which becomes more positive. Additionally, firms align their cultural messaging after Trump's presidency, eliminating differences in likely-Democrat and likely-Republican firms' emphases. In the cross-section, likely-Republican firms emphasize quality and respect, while likely-Democrat firms emphasize innovation. We examine corporate outcomes related to corporate culture messaging. Our findings highlight the impact of political factors on shaping corporate culture messaging and its consequences.

-Presentations: University of Missouri-Columbia 2023, FMA 2023, MFA 2024*, EFA 2024

This paper offers new economic insights into the well-known “presidential puzzle,” where returns are lower during Republican presidencies. We examine the underlying mechanism and document lower corporate cash flow-related outcomes in public firms: sales growth, profitability, operating cash flows, and investment. Additionally, firms pay lower taxes, have lower employment, and hold more cash during Republican presidencies. Zooming into the cross-section of individual firms, we examine several explanations, including split and aligned Congress, different years of the presidency, exposure to government contracts, exports, acquisitions, executive compensation, and periods of heightened political polarization. Our results vary across firms: firms located in Democrat-leaning areas experience significantly lower profitability and sales and invest less during Republican presidencies. This paper documents additional real effects of the “presidential puzzle” in public firms.

-Presentations: Financial Management Association 2024 (scheduled)*, University of Missouri 2024, University of Kansas 2024*, University of Nebraska-Lincoln 2024*, Oregon State University 2024*, University of Oregon 2024*, Purdue University 2024*, University of Washington 2024*, and Washington University at St. Louis (WashU) Wealth and Asset Management Conference 2024*