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

Author

Listed:
  • Angelo Fanelli

    (Department of Management and Human Resources, HEC School of Management, 78351 Jouy-en-Josas CEDEX, France)

  • Vilmos F. Misangyi

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

  • Henry L. Tosi

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

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.

Suggested Citation

  • Angelo Fanelli & Vilmos F. Misangyi & Henry L. Tosi, 2009. "In Charisma We Trust: The Effects of CEO Charismatic Visions on Securities Analysts," Organization Science, INFORMS, vol. 20(6), pages 1011-1033, December.
    • Handle: RePEc:inm:ororsc:v:20:y:2009:i:6:p:1011-1033
    DOI: 10.1287/orsc.1080.0407
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    References listed on IDEAS

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