A new study offers a clear takeaway for CEOs and corporate leaders concerned with building trust with their investors: The wording they use to describe a company’s future plans and the format in which they are shared may actually shape investor decisions.
The research, , was co-authored by Lee Business School accounting professor Scott C. Jackson and colleagues from the University of Massachusetts Amherst.
To understand how communications methods influence investor decisions, the researchers tracked how 250 past and would-be MBA student investors responded to the same CEO message. Some received it in writing, while others watched a video or listened to an audio clip.
Researchers found that when CEOs and managers describe future events using certain types of language — like present tense or active voice — investors were more likely to see those events as real and likely. But here’s the catch: this only happens when the message is written.
For messages delivered through video or audio, the perceived likelihood of future events mostly disappears because people start processing voice and facial cues instead of words.
“Written communication holds more weight in this case,” said Jackson. “When people read about far-off plans discussed with immediate language, it brings the future closer in their minds and makes it seem more likely. But with video or audio, other things — like tone or body language — start to play a bigger role and dilute the message.”
The Bigger Picture
The study comes at a time when federal agencies like the U.S. Securities and Exchange Commission (SEC) and Federal Trade Commission are stepping up efforts to make financial and corporate communication more transparent — from cracking down on hidden fees to pushing for clearer risk disclosures. It also aligns with the SEC’s growing attention to the language and tone companies use in public disclosures. As companies increasingly share their vision across platforms like YouTube, LinkedIn, and earnings calls, the way those messages are delivered, and how they sound, is more important than ever.
“We’re used to thinking that video adds a sense of professionalism and credibility,” said Jackson. “But when it comes to shaping expectations about the future, written communication might actually have the stronger effect.”
How the Message Shapes a Moment
This doesn’t just matter to Wall Street. It has ripple effects across industries and cities.
Las Vegas, for example, is no stranger to bold announcements for new casinos, sports arenas, and tech hubs. Behind every major development is a pitch to investors, city planners, and other stakeholders. This study suggests that how and where those plans are communicated could impact how real or risky they seem.
And it reflects a broader truth about human perception, Jackson said. He points to a historic example in the 1960 Kennedy-Nixon presidential debates. TV viewers favored the polished, confident image of JFK, while radio listeners focused only on words and believed Nixon came out ahead. The medium matters, and written communication may hold more sway than we think.
About the Study
“" was published Feb. 27, 2025 in the journal Behavioral Research in Accounting. Jackson collaborated with Elaine Wang and David Piercey of the University of Massachusetts Amherst.
