Activity: Talk or presentation › Presentation at conference/workshop/seminar
Description
We investigate whether and how the level of language negativity affects corporate violations. We develop a novel metric of ancestral language negativity across 51 countries and analyze the negative emotional words related to death, disease, and violence in 27 languages, which reflects a country’s overall tendency toward negativity in everyday narratives. Our results indicate that the incidence, frequency, and severity of violations detected by regulatory agencies are negatively associated with the levels of CEO language negativity. This relationship is more pronounced for firms with high organizational complexity, transparent information environment, and intense pressure. Overall, our findings highlight the significant impact of narrative negativity across languages on the behavior of capital market participants and the potential influence of language negativity on corporate violations.
Period
30 Aug 2025
Event title
1st ChongQing-Mountain City-Accounting and Finance Research Exchange Workshop