Ceos’ Financial Experience, Pessimistic Tones in Earnings Announcements and Firm Value: Evidence During the Covid-19 Pandemic

This study examines the association between pessimistic tones in earnings announcements and firm value, as well as the role of CEOs’ financial experience during the Covid-19 pandemic. Fixed effects regression was employed to analyze 1,380 firm-year observations from Indonesia Stock Exchange-listed non-financial enterprises during the pandemic. The analysis results indicate that a pessimistic tone in earnings announcements negatively impacts firm value, while the CEO's financial experience reduces this negative effect. The study added to the literature by revealing that CEOs' financial experience acts as a credibility signal for investors, reducing the association between pessimistic tone and firm valuation during pandemic.