Market Reaction to CEOs’ Dynamic Hemifacial Asymmetry of Expressions

References

• Adolphs R (2002) Trust in the brain. Nat. Neurosci. 5(3):192–193.Crossref, Google Scholar
• Aggleton JP, Burton MJ, Passingham RE (1980) Cortical and subcortical afferents to the amygdala of the rhesus monkey (Macaca mulatta). Brain Res. 190(2):347–368.Crossref, Google Scholar
• Amiram D, Owens E, Rozenbaum O (2016) Do information releases increase or decrease information asymmetry? New evidence from analyst forecast announcements. J. Accounting Econom. 62(1):121–138.Crossref, Google Scholar
• Ball R, Brown P (1968) An empirical evaluation of accounting income numbers. J. Accounting Res. 6(2):159–178.Crossref, Google Scholar
• Ball R, Kothari SP (1991) Security returns around earnings announcements. Accounting Rev. 66(4):718–738.Google Scholar
• Bamber LS, Barron OE, Stevens DE (2011) Trading volume around earnings announcements and other financial reports: Theory, research design, empirical evidence, and directions for future research. Contemp. Accounting Res. 28(2):431–471.Crossref, Google Scholar
• Basu S (1997) The conservatism principle and the asymmetric timeliness of earnings. J. Accounting Econom. 24(1):3–37.Crossref, Google Scholar
• Blankespoor E, deHaan E, Marinovic I (2020) Disclosure processing costs, investors’ information choice, and equity market outcomes: A review. J. Accounting Econom. 70(2–3):101344.Crossref, Google Scholar
• Blankespoor E, Hendricks BE, Miller GS (2017) Perceptions and price: Evidence from CEO presentations at IPO roadshows. J. Accounting Res. 55(2):275–327.Crossref, Google Scholar
• Blankespoor E, Miller GS, White HD (2014) The role of dissemination in market liquidity: Evidence from firms’ use of Twitter™. Accounting Rev. 89(1):79–112.Crossref, Google Scholar
• Blau BM, DeLisle JR, McKay Price S (2015) Do sophisticated investors interpret earnings conference call tone differently than investors at large? Evidence from short sales. J. Corporate Finance 31:203–219.Crossref, Google Scholar
• Bochkay K, Hales J, Chava S (2020) Hyperbole or reality? Investor response to extreme language in earnings conference calls. Accounting Rev. 95(2):31–60.Crossref, Google Scholar
• Borod JC, Koff E (2015) Asymmetries in affective facial expression: Behavior and anatomy. Fox NA, Davidson RJ, eds. The Psychobiology of Affective Development, Psychology Library Editions: Emotion, Chap. 8 (Psychology Press, New York), 293–321.Google Scholar
• Borod JC, Haywood CS, Koff E (1997) Neuropsychological aspects of facial asymmetry during emotional expression: A review of the normal adult literature. Neuropsych. Rev. 7(1):41–60.Crossref, Google Scholar
• Borod JC, Koff E, White B (1983) Facial asymmetry in posed and spontaneous expressions of emotion. Brain Cognition 2(2):165–175.Crossref, Google Scholar
• Bourveau T, She G, Žaldokas A (2020) Corporate disclosure as a tacit coordination mechanism: Evidence from cartel enforcement regulations. J. Accounting Res. 58(2):295–332.Crossref, Google Scholar
• Brown NC, Crowley RM, Brooke Elliott W (2020) What are you saying? Using topic to detect financial misreporting. J. Accounting Res. 58(1):237–291.Crossref, Google Scholar
• Busin Y, Lukasova K, Asthana MK, Macedo EC (2018) Hemiface differences in visual exploration patterns when judging the authenticity of facial expressions. Frontiers Psych. 8:2332.Crossref, Google Scholar
• Busse JA, Green TC (2002) Market efficiency in real time. J. Financial Econom. 65(3):415–437.Crossref, Google Scholar
• Campbell R (1978) Asymmetries in interpreting and expressing a posed facial expression. Cortex 14(3):327–342.Crossref, Google Scholar
• Cao Y, Guan F, Li Z, Yang YG (2020) Analysts’ beauty and performance. Management Sci. 66(9):4315–4335.Link, Google Scholar
• Carr EW, Korb S, Niedenthal PM, Winkielman P (2014) The two sides of spontaneity: Movement onset asymmetries in facial expressions influence social judgments. J. Experiment. Soc. Psych. 55:31–36.Crossref, Google Scholar
• Chen J, Demers E, Lev B (2018) Oh what a beautiful morning! Diurnal influences on executives and analysts: Evidence from conference calls. Management Sci. 64(12):5899–5924.Link, Google Scholar
• Chen X, Cheng Q, Lo AK (2014) Is the decline in the information content of earnings following restatements short-lived? Accounting Rev. 89(1):177–207.Crossref, Google Scholar
• Cheng Q, Luo T, Yue H (2013) Managerial incentives and management forecast precision. Accounting Rev. 88(5):1575–1602.Crossref, Google Scholar
• Chi SS, Shanthikumar DM (2017) Local bias in Google search and the market response around earnings announcements. Accounting Rev. 92(4):115–143.Crossref, Google Scholar
• Chordia T, Roll R, Subrahmanyam A (2008) Liquidity and market efficiency. J. Financial Econom. 87(2):249–268.Crossref, Google Scholar
• Choudhury P, Wang D, Carlson NA, Khanna T (2019) Machine learning approaches to facial and text analysis: Discovering CEO oral communication styles. Strategic Management J. 40(11):1705–1732.Crossref, Google Scholar
• Clement MB, Koonce L, Lopez TJ (2008) The roles of task-specific forecasting experience and innate ability in understanding analyst forecasting performance. J. Accounting Econom. 44(3):378–398.Google Scholar
• Coller M, Yohn TL (1997) Management forecasts and information asymmetry: An examination of bid-ask spreads. J. Accounting Res. 35(2):181–191.Crossref, Google Scholar
• Collins DW, Kothari SP (1989) An analysis of intertemporal and cross-sectional determinants of earnings response coefficients. J. Accounting Econom. 11(2–3):143–181.Google Scholar
• Conrad J, Cornell B, Landsman WR (2002) When is bad news really bad news? J. Finance 57(6):2507–2532.Crossref, Google Scholar
• Côté S (2005) A social interaction model of the effects of emotion regulation on work strain. Acad. Management Rev. 30(3):509–530.Crossref, Google Scholar
• Côté S, Hideg I, van Kleef GA (2013) The consequences of faking anger in negotiations. J. Experiment. Soc. Psych. 49(3):453–463.Crossref, Google Scholar
• Darwin C (1965) The Expression of the Emotions in Man and Animals (by) Charles Darwin (University of Chicago Press, Chicago).Crossref, Google Scholar
• Dehaan E, Madsen J, Piotroski JD (2017) Do weather‐induced moods affect the processing of earnings news? J. Accounting Res. 55(3):509–550.Crossref, Google Scholar
• Dopson WG, Beckwith BE, Tucker DM, Carol Bullard-Bates P (1984) Asymmetry of facial expression in spontaneous emotion. Cortex 20(2):243–251.Crossref, Google Scholar
• Dugast J, Foucault T (2018) Data abundance and asset price informativeness. J. Financial Econom. 130(2):367–391.Crossref, Google Scholar
• Ekman P, Friesen WV (1971) Constants across cultures in the face and emotion. J. Personality Soc. Psych. 17(2):124–129.Crossref, Google Scholar
• Elliott WB, Grant SM, Hodge FD (2018) Negative news and investor trust: The role of $Firm and# CEO Twitter use. J. Accounting Res. 56(5):1483–1519.Crossref, Google Scholar
• Elliott WB, Hodge FD, Sedor LM (2012) Using online video to announce a restatement: Influences on investment decisions and the mediating role of trust. Accounting Rev. 87(2):513–535.Crossref, Google Scholar
• Engelberg J, Sasseville C, Williams J (2012) Market madness? The case of mad money. Management Sci. 58(2):351–364.Link, Google Scholar
• Flam RW, Green J, Sharp NY (2020) Do investors respond to CEO facial expressions of anger during television interviews? Preprint, submitted December 15, https://dx.doi.org/10.2139/ssrn.3740755.Google Scholar
• Francis J, Schipper K (1999) Have financial statements lost their relevance? J. Accounting Res. 37(2):319–352.Crossref, Google Scholar
• Frank MZ, Sanati A (2018) How does the stock market absorb shocks? J. Financial Econom. 129(1):136–153.Crossref, Google Scholar
• Ghosh A, Gu Z, Jain PC (2005) Sustained earnings and revenue growth, earnings quality, and earnings response coefficients. Rev. Accounting Stud. 10(1):33–57.Crossref, Google Scholar
• Grandey AA (2003) When “the show must go on”: Surface acting and deep acting as determinants of emotional exhaustion and peer-rated service delivery. Acad. Management J. 46(1):86–96.Crossref, Google Scholar
• Grandey AA, Fisk GM, Mattila AS, Jansen KJ, Sideman LA (2005) Is “service with a smile” enough? Authenticity of positive displays during service encounters. Organ. Behav. Human Decision Processes 96(1):38–55.Crossref, Google Scholar
• Gross JJ, John OP (2003) Individual differences in two emotion regulation processes: Implications for affect, relationships, and well-being. J. Personality Soc. Psych. 85(2):348–362.Crossref, Google Scholar
• Gu F, Li JQ (2007) The credibility of voluntary disclosure and insider stock transactions. J. Accounting Res. 45(4):771–810.Crossref, Google Scholar
• Guiso L, Sapienza P, Zingales L (2004) The role of social capital in financial development. Amer. Econom. Rev. 94(3):526–556.Crossref, Google Scholar
• Guiso L, Sapienza P, Zingales L (2006) Does culture affect economic outcomes? J. Econom. Perspect. 20(2):23–48.Crossref, Google Scholar
• Guiso L, Sapienza P, Zingales L (2008) Trusting the stock market. J. Finance 63(6):2557–2600.Crossref, Google Scholar
• Guo W, Sengul M, Yu T (2021) The impact of executive verbal communication on the convergence of investors’ opinions. Acad. Management J. 64(6):1763–1792.Crossref, Google Scholar
• Gurun UG, Stoffman N, Yonker SE (2018) Trust busting: The effect of fraud on investor behavior. Rev. Financial Stud. 31(4):1341–1376.Crossref, Google Scholar
• He X, Yin H, Zeng Y, Zhang H, Zhao H (2019) Facial structure and achievement drive: Evidence from financial analysts. J. Accounting Res. 57(4):1013–1057.Crossref, Google Scholar
• Heater JC, Liu Y, Tan Q, Zhang F (2022) Winning is not enough: Changing landscapes of earnings surprises and the market reaction. Preprint, submitted January 27, https://dx.doi.org/10.2139/ssrn.3853030.Google Scholar
• Heitzman S, Wasley C, Zimmerman J (2010) The joint effects of materiality thresholds and voluntary disclosure incentives on firms’ disclosure decisions. J. Accounting Econom. 49(1–2):109–132.Crossref, Google Scholar
• Hobson JL, Mayew WJ, Venkatachalam M (2012) Analyzing speech to detect financial misreporting. J. Accounting Res. 50(2):349–392.Crossref, Google Scholar
• Holden CW, Jacobsen S (2014) Liquidity measurement problems in fast, competitive markets: Expensive and cheap solutions. J. Finance 69(4):1747–1785.Crossref, Google Scholar
• Hollander S, Pronk M, Roelofsen E (2010) Does silence speak? An empirical analysis of disclosure choices during conference calls. J. Accounting Res. 48(3):531–563.Crossref, Google Scholar
• Hornak J, Rolls ET, Wade D (1996) Face and voice expression identification in patients with emotional and behavioural changes following ventral frontal lobe damage. Neuropsychologia 34(4):247–261.Crossref, Google Scholar
• Hsieh T-S, Kim J-B, Wang RR, Wang Z (2020) Seeing is believing? Executives’ facial trustworthiness, auditor tenure, and audit fees. J. Accounting Econom. 69(1):101260.Crossref, Google Scholar
• Huang AH, Zang AY, Zheng R (2014) Evidence on the information content of text in analyst reports. Accounting Rev. 89(6):2151–2180.Crossref, Google Scholar
• Huang AH, Lehavy R, Zang AY, Zheng R (2018a) Analyst information discovery and interpretation roles: A topic modeling approach. Management Sci. 64(6):2833–2855.Link, Google Scholar
• Huang X, Nekrasov A, Teoh SH (2018b) Headline salience, managerial opportunism, and over- and underreactions to earnings. Accounting Rev. 93(6):231–255.Crossref, Google Scholar
• Hutton AP, Miller GS, Skinner DJ (2003) The role of supplementary statements with management earnings forecasts. J. Accounting Res. 41(5):867–890.Crossref, Google Scholar
• Indersmitten T, Gur RC (2003) Emotion processing in chimeric faces: Hemispheric asymmetries in expression and recognition of emotions. J. Neurosci. 23(9):3820–3825.Crossref, Google Scholar
• Iwai E, Yukie M (1987) Amygdalofugal and amygdalopetal connections with modality‐specific visual cortical areas in macaques (Macaca fuscata, M. mulatta, and M. fascicularis). J. Comp. Neurol. 261(3):362–387.Crossref, Google Scholar
• Kahn EA (1966) On facial expression. Neurosurgery 12(CN_suppl_1):9–22.Crossref, Google Scholar
• Kaplan SN, Klebanov MM, Sorensen M (2012) Which CEO characteristics and abilities matter? J. Finance 67(3):973–1007.Crossref, Google Scholar
• Kendall C (2018) The time cost of information in financial markets. J. Econom. Theory 176:118–157.Crossref, Google Scholar
• Keung E, Lin Z-X, Shih M (2010) Does the stock market see a zero or small positive earnings surprise as a red flag? J. Accounting Res. 48(1):105–136.Crossref, Google Scholar
• King DE (2009) Dlib-ml: A machine learning toolkit. J. Machine Learn. Res. 10:1755–1758.Google Scholar
• Kothari SP, Wasley C (2019) Commemorating the 50‐year anniversary of Ball and Brown (1968): The evolution of capital market research over the past 50 years. J. Accounting Res. 57(5):1117–1159.Crossref, Google Scholar
• Lasser DJ, Wang X, Zhang Y (2010) The effect of short selling on market reactions to earnings announcements. Contemp. Accounting Res. 27(2):609–638.Crossref, Google Scholar
• Lee C, Watts EM (2021) Tick size tolls: Can a trading slowdown improve earnings news discovery? Accounting Rev. 96(3):373–401.Crossref, Google Scholar
• Lee CMC, Ready MJ (1991) Inferring trade direction from intraday data. J. Finance 46(2):733–746.Crossref, Google Scholar
• Lins KV, Servaes H, Tamayo A (2017) Social capital, trust, and firm performance: The value of corporate social responsibility during the financial crisis. J. Finance 72(4):1785–1824.Crossref, Google Scholar
• Liu J, Thomas J (2000) Stock returns and accounting earnings. J. Accounting Res. 38(1):71–101.Crossref, Google Scholar
• Loughran T, McDonald B (2011) When is a liability not a liability? Textual analysis, dictionaries, and 10‐Ks. J. Finance 66(1):35–65.Crossref, Google Scholar
• Loughran T, McDonald B (2016) Textual analysis in accounting and finance: A survey. J. Accounting Res. 54(4):1187–1230.Crossref, Google Scholar
• Lucey P, Cohn JF, Kanade T, Saragih J, Ambadar Z, Matthews I (2010) The extended Cohn-Kanade dataset (CK+): A complete dataset for action unit and emotion-specified expression. 2010 IEEE Comput. Soc. Conf. Comput. Vision Pattern Recognition – Workshops (IEEE, Piscataway, NJ), 94–101.Google Scholar
• Lundholm RJ, Rogo R, Zhang JL (2014) Restoring the tower of Babel: How foreign firms communicate with US investors. Accounting Rev. 89(4):1453–1485.Crossref, Google Scholar
• Mayew WJ, Venkatachalam M (2012) The power of voice: Managerial affective states and future firm performance. J. Finance 67(1):1–43.Crossref, Google Scholar
• McHugo GJ, Smith CA (1996) The power of faces: A review of John T. Lanzetta’s research on facial expression and emotion. Motivation Emotion 20(2):85–120.Crossref, Google Scholar
• Morris JS, Frith CD, Perrett DI, Rowland D, Young AW, Calder AJ, Dolan RJ (1996) A differential neural response in the human amygdala to fearful and happy facial expressions. Nature 383(6603):812–815.Crossref, Google Scholar
• Myers RE (1976) Comparative neurology of vocalization and speech: Proof of a dichotomy. Ann. N. Y. Acad. Sci. 280(1):745–757.Crossref, Google Scholar
• Okubo M, Ishikawa K, Kobayashi A (2013) No trust on the left side: Hemifacial asymmetries for trustworthiness and emotional expressions. Brain Cognition 82(2):181–186.Crossref, Google Scholar
• Okubo M, Ishikawa K, Kobayashi A, Suzuki H (2017) Can I trust you? Laterality of facial trustworthiness in an economic game. J. Nonverbal Behav. 41(1):21–34.Crossref, Google Scholar
• Oosterhof NN, Todorov A (2009) Shared perceptual basis of emotional expressions and trustworthiness impressions from faces. Emotion 9(1):128–133.Crossref, Google Scholar
• Penman SH, Yehuda N (2019) A matter of principle: Accounting reports convey both cash-flow news and discount-rate news. Management Sci. 65(12):5584–5602.Link, Google Scholar
• Penman SH, Zhu JL (2014) Accounting anomalies, risk, and return. Accounting Rev. 89(5):1835–1866.Crossref, Google Scholar
• Phillips ML, Young AW, Senior C, Brammer M, Andrew C, Calder AJ, Bullmore ET, et al. (1997) A specific neural substrate for perceiving facial expressions of disgust. Nature 389(6650):495–498.Crossref, Google Scholar
• Sackeim HA, Gur RC (1983) Facial asymmetry and the communication of emotion. Cacioppo JT, Petty RE, eds. Social Psychophysiology: A Sourcebook (Guilford Press, New York), 307–352.Google Scholar
• Skinner M, Mullen B (1991) Facial asymmetry in emotional expression: A meta‐analysis of research. Br. J. Soc. Psych. 30(2):113–124.Crossref, Google Scholar
• Srivastava S, Tamir M, McGonigal KM, John OP, Gross JJ (2009) The social costs of emotional suppression: A prospective study of the transition to college. J. Personality Soc. Psych. 96(4):883–897.Crossref, Google Scholar
• Todorov A, Porter JM (2014) Misleading first impressions: Different for different facial images of the same person. Psych. Sci. 25(7):1404–1417.Crossref, Google Scholar
• Tschiassny K (1953) Eight syndromes of facial paralysis and their significance in locating the lesion. Ann. Otology Rhinology Laryngology 62(3):677–691.Crossref, Google Scholar
• Wang B (2013) Facial expression influences recognition memory for faces: Robust enhancement effect of fearful expression. Memory 21(3):301–314.Crossref, Google Scholar
• Wei C, Zhang L (2022) Trust in financial markets: Evidence from reactions to earnings news. Management Sci., ePub ahead of print November 7, https://doi.org/10.1287/mnsc.2022.4569.Link, Google Scholar
• Williams CD (2015) Asymmetric responses to earnings news: A case for ambiguity. Accounting Rev. 90(2):785–817.Crossref, Google Scholar
• Zaidel DW, Bava S, Reis VA (2003) Relationship between facial asymmetry and judging trustworthiness in faces. Laterality 8(3):225–232.Crossref, Google Scholar