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If THIS Doesn’t Perfectly Describe Wall Street

“Based on analysts’ LinkedIn profiles, we identify a robust negative correlation between the expressive tone conveyed in their self-presentations and forecast accuracy, particularly among male analysts, less experienced professionals, and those with fewer LinkedIn followers. We interpret this tone-performance inverse effect not as a behavioral bias, but as a strategic self-promotion behavior aimed at compensating for skill gaps and increasing visibility. Both investors and employers value such an expressive tone. Market reactions show stronger excess returns for high-tone analysts’ upward revisions and positive ratings, with no similar effect for negative signals, highlighting a Mad Money-like pricing distortion. Low-accuracy but high-tone analysts achieve the highest career promotion rates relative to their peers. These findings offer new insights into the unintended consequences of impression management in financial markets.”

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