ENTREPRENEUR'S BODY COMMUNICATION, INVESTOR PERCEPTIONS, FIRM FORECAST ERRORS AND VALUATION

Antonio Davila, Marti Guasch

Research output: Conference paperContributionpeer-review

Abstract

We use computer vision software to analyze body expansiveness as a communication mechanism in entrepreneurs' pitches. We obtain 2D skeletal information from 154 videos of entrepreneurs and examine whether body expansiveness is associated with financial forecasts, valuation, firm performance, and funding success. We find that more expansive entrepreneurs show higher forecast revenue and income errors, higher valuations, lower probability of survival, yet more likely to get funding. These findings suggest that investors fail to fully incorporate nonverbal information in their decision-making processes. We further find that these results do not extend to older and VC-backed startups, indicating that governance mitigates these associations.

Original languageEnglish
DOIs
Publication statusPublished - 2021
Externally publishedYes
Event81st Annual Meeting of the Academy of Management 2021: Bringing the Manager Back in Management, AoM 2021 - Virtual, Online
Duration: 29 Jul 20214 Aug 2021

Conference

Conference81st Annual Meeting of the Academy of Management 2021: Bringing the Manager Back in Management, AoM 2021
CityVirtual, Online
Period29/07/214/08/21

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