War Metaphors in Corporate Communication Backfire with Analysts

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War Metaphors in Corporate Communication Backfire with Analysts
CORPORATE COMMUNICATIONANALYST REACTIONSWAR METAPHORS
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Research shows that aggressive war metaphors used by corporate executives in announcements can trigger negative reactions from financial analysts. Analysts perceive such language as a sign of excessive risk, especially when avoiding direct competition is deemed beneficial. The study emphasizes the importance of carefully chosen language for companies as it significantly influences how their actions are perceived.

Corporate executives often use war metaphors like “declaring war on the competition” to project strength and confidence in their strategies. Research reveals that these aggressive metaphors may provoke negative reactions from a critical audience: financial analysts. After analyzing nearly 1,000 acquisition announcements, the authors find that war-related language tends to trigger negative reactions from analysts, who see it as a sign of excessive risk.

“We’re going to run them out of business and buy that building, which we’re going to bulldoze. After that, we’ll salt the earth. Then we’ll go after their families,” Larry Ellison, executive chairman of Oracle,in reference to a competitor. This kind of statement epitomizes the aggressive war metaphors that often appear in corporate communication. And while it’s a particularly colorful example, it’s hardly exceptional.

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CORPORATE COMMUNICATION ANALYST REACTIONS WAR METAPHORS RISK PERCEPTION STRATEGIC LANGUAGE

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