In Charisma We Trust: The Effects of CEO Charismatic Visions on Securities Analysts

Angelo Fanelli
Angelo Fanelli
[email protected]
Department of Management and Human Resources, HEC School of Management, 78351 Jouy-en-Josas CEDEX, France
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,
Vilmos F. Misangyi
Vilmos F. Misangyi
[email protected]
Department of Management and Organization, Smeal College of Business, The Pennsylvania State University, University Park, Pennsylvania 16802
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,
Henry L. Tosi
Henry L. Tosi
[email protected]
Warrington College of Business Administration, University of Florida, Gainesville, Florida 32611 and Università Bocconi, Milan, Italy
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Department of Management and Human Resources, HEC School of Management, 78351 Jouy-en-Josas CEDEX, France

Department of Management and Organization, Smeal College of Business, The Pennsylvania State University, University Park, Pennsylvania 16802

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Henry L. Tosi

[email protected]

Warrington College of Business Administration, University of Florida, Gainesville, Florida 32611 and Università Bocconi, Milan, Italy

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Published Online:19 Dec 2008https://doi.org/10.1287/orsc.1080.0407

Abstract

Using a thematic text analysis of the initial letters to shareholders following a CEO succession event, we analyze whether CEO charismatic visions portrayed in this organizational discourse influence securities analysts' recommendations and forecasts. The results suggest that such projections of CEO charismatic visions are associated with the favorability of individual analyst recommendations and the uniformity of recommendations across analysts, but they also appear to be positively related to errors in individual analysts' forecasting of future firm performance.

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Volume 20, Issue 6

November-December 2009

Pages 941-1076

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Published Online:December 19, 2008

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Angelo Fanelli, Vilmos F. Misangyi, Henry L. Tosi, (2008) In Charisma We Trust: The Effects of CEO Charismatic Visions on Securities Analysts. Organization Science 20(6):1011-1033.

https://doi.org/10.1287/orsc.1080.0407

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In Charisma We Trust: The Effects of CEO Charismatic Visions on Securities Analysts

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