Abstract
We propose that while positive performance feedback is positively related to firm sentiment, negative performance feedback is negatively associated with the firm sentiment. Additionally, overconfident Chief Executive Officers (CEOs) will improve the positive relationship between positive performance feedback and firm sentiment and reduce the negative relationship between negative performance feedback and firm sentiment. Using 7,182 firm-year observations for the 2004−2017 period, we show that positive performance feedback positively affects firm sentiment, and negative performance feedback negatively influences firm sentiment. We also found that higher levels of CEO overconfidence will minimize the negative impact of negative performance feedback on firm sentiment. Our research extends the current discourse on organizational impression management (proxied by firm sentiment) and CEO overconfidence research as we provide a nuanced relationship between firm performance feedback and organizational impression management. Our findings have theoretical and practical implications for corporate governance leaders and shareholders.
Description
© The Author(s), 2024. Published by Cambridge University Press in association with Australian and New Zealand Academy of Management. This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (http://creativecommons.org/licenses/by/4.0), which permits unrestricted re-use, distribution and reproduction, provided the original article is properly cited.
Publisher
ANZAM
Date of publication
1-2024
Language
english
Persistent identifier
http://hdl.handle.net/10950/4936
Document Type
Article
Recommended Citation
Dadanlar, Hazel H.; Vaswani, Manisha M.; Al-Shammari, Marwan A.; and Banerjee, Soumendra Nath, "Firm performance feedback and organizational impression management: The moderating role of CEO overconfidence" (2024). Management Faculty Publications and Presentations. Paper 15.
http://hdl.handle.net/10950/4936