In this paper, we develop a theory about how language abstraction - a dominant strategy used to create common ground among diverse audiences - can become problematic when used in a global environment where market actors have divergent interests. Employing a multicountry event study, we analyze how the stock markets in 11 Eurozone countries react to the abstract language in public speeches delivered by the European Central Bank president. We find that abstract language, rather than creating common ground, produces divergent market reactions across core and peripheral countries, such that market actors in core countries react more favorably to abstract communication, while those in peripheral countries prefer concrete communication. We also show that this divergent reaction is stronger when the economic interests of the core and the periphery are made more salient.
Harmon D., M.M. (2024). Divergent Market Reactions to Abstract Language: A Multicountry Event Study of European Central Bank Communications. THE ACADEMY OF MANAGEMENT JOURNAL, 0, 1-24 [10.5465/amj.2022.0814].
Divergent Market Reactions to Abstract Language: A Multicountry Event Study of European Central Bank Communications
Mariani M.Co-primo
2024
Abstract
In this paper, we develop a theory about how language abstraction - a dominant strategy used to create common ground among diverse audiences - can become problematic when used in a global environment where market actors have divergent interests. Employing a multicountry event study, we analyze how the stock markets in 11 Eurozone countries react to the abstract language in public speeches delivered by the European Central Bank president. We find that abstract language, rather than creating common ground, produces divergent market reactions across core and peripheral countries, such that market actors in core countries react more favorably to abstract communication, while those in peripheral countries prefer concrete communication. We also show that this divergent reaction is stronger when the economic interests of the core and the periphery are made more salient.File | Dimensione | Formato | |
---|---|---|---|
AMJ-2022-0814.final.pdf
embargo fino al 16/02/2025
Tipo:
Postprint
Licenza:
Licenza per Accesso Aperto. Creative Commons Attribuzione - Non commerciale - Non opere derivate (CCBYNCND)
Dimensione
598.59 kB
Formato
Adobe PDF
|
598.59 kB | Adobe PDF | Visualizza/Apri Contatta l'autore |
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.