From Mic to Market: The Role of CEO Podcasts in Financial Markets
Abstract
This paper examines the capital market impacts of CEO podcasts-an emerging but informal communication channel. We distinguish episodes where CEOs are discussed from those where CEOs appear in-person as interview guests. CEO podcasts elicit significant market responses, including increased trading activity and abnormal returns, particularly among retail investors. However, CEO-interview podcasts generate stronger effects than mentions, likely due to their perceived intentionality and potential to foster para-social relationships. We also document heightened investor attention-measured via Wikipedia searches-especially for CEOs following interview episodes. Notably, CEO-interview podcasts following negative earnings announcements are associated with significant return reversals, suggesting they may influence perceptions through a more personal and conversational tone. Consistent with this, content analysis shows these podcasts are more positive and subjective, and less complex than corresponding earnings call transcripts. Our findings suggest that podcasts, though unconventional and potentially non-compliant with disclosure regulations, serve as an impactful medium through which CEOs can shape narratives, engage investors, and potentially soften the market's response to bad news.