Study: CEO War Metaphors in Communications Signal Risk to Analysts

Corporate executives often use war metaphors such as “doing battle with the competition” to project strength and confidence, but this aggressive language may provoke negative reactions from financial analysts, who think it signals excessive risk, new research suggests. 

As Harvard Business Review reports, a study to be published in the journal Organization Science finds that CEOs often use war metaphors in acquisition announcements. In 2006, Gary Pruitt, then-CEO of the McClatchy Company, told investors and analysts: “We dare not go into battle with anything less than the best.” In a 2013 call, Veeco Instruments described the mobile market as a “battleground.”

War metaphors employ vivid imagery to simplify complicated strategies, making communication easier. However, according to the research, when CEOs used one percentage point more war-related words in their presentations, analysts’ reports were 20% more negative compared to announcements that did not use such language.

War metaphors can trigger emotional responses associated with danger, which analysts may interpret as a sign that the company is engaging in reckless behavior. The effect is especially strong when a few dominant players control most of the market. In those cases, analysts tend to expect cautious, strategic actions from companies. 

The study finds that, for firms with large market shares, projecting aggression through war metaphors can signal overconfidence or lack of competitive restraint. 

Rather than rely on war metaphors, executives should carefully select language that meets the expectations of their audience and the competitive environment in which they operate.