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War Metaphors in Business: Triggering Negative Reactions From Analysts

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CORPORATE COMMUNICATION,FINANCIAL ANALYSTS,METAPHORS

Research reveals that corporate executives' use of war metaphors, while intended to project strength, can backfire. Analyzing nearly 1,000 acquisition announcements, the study found that war-related language provokes negative reactions from financial analysts, who perceive it as a sign of excessive risk. This backlash is particularly strong when analysts believe that avoiding direct competition is in the company's best interest.

Corporate executives often use war metaphors like “declaring war on the competition” to project strength and confidence in their strategies. Research reveals that these aggressive metaphors may provoke negative reactions from a critical audience: financial analysts. After analyzing nearly 1,000 acquisition announcements, the authors find that war-related language tends to trigger negative reactions from analysts, who see it as a sign of excessive risk.

In 2006, then-CEO of the McClatchy Company, Gary Pruitt,, “The stakes have never been higher … and we dare not go into battle with anything less than the best.” In a 2015 conference call with analysts, executives at Infinera Corporation were “armed with an end-to-end offering.” In a 2013 call, Veeco Instruments described the mobile market as a “battleground,” and in 2009 First Solar described their acquisition move as an “offensive” aimed at overtaking competitors.

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