Agenda

27 Set 2023 10:30

Melvyn Weeks - Making Sense of Natural Language

Meeting Room 1, San Giobbe Economics Campus + online

Melvyn Weeks (University of Cambridge) - Making Sense of Natural Language: Measuring Cultural Fit and Its Impact on Managerial Tenure

Abstract: We create measures for managers' cultural fit using one of the latest machine learning technologies – the sentence embedding model - by analysing 11.5 million speeches in earnings calls. A better cultural fit is significantly and positively correlated with managerial tenure. We demonstrate that the effect of cultural fit on managerial tenure is causal using causal survival forests. Firms that hire culturally disruptive managers have lower future market values and performance. The stock market reacts positively to signals that indicate low cultural dispersion within the firm.

Lingua

L'evento si terrà in inglese

Organizzatore

Department of Economics (InSeminars)

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