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July 5, 2022

Study finds link between company’s stock market performance and leader’s tone of voice

By Katherine Dumbell

Link found between company performance and tone of voice of leader encourages use of voice coaching in UK businesses.

The National Bureau of Economic Research’s ‘Voice of Monetary Policy’ report found that a more upbeat and positive tone leads to a more positive share price. This was found over an eight-year period of press conferences and studying the answers of the US Federal Reserve Chairs.  

Researchers Yuriy Gorodnichenko, Tho Pham & Oleksandr Talavera said; “We find that after controlling for the Fed’s actions and the sentiment in policy text, positive tone in the voices of Fed Chairs leads to statistically significant and economically large increases in share prices. In other words, how policy messages are communicated can move the stock market.” 

The Business Voice Coach Susan Room says; “This is just one of many things most people don’t know about the voice. Understanding how it works and how to manage it from the inside out, can not only move markets, it can change lives and bring about better balanced business.” 

Five tips from Susan Room for harnessing the power of your voice to better company performance include: 

1. Speed  

It’s a delicate balance between too fast or too slow, but varying your pace is also important to keep interest up. 

2. Pitch 

Pitch conveys emotion. Research from Duke University shows CEOs with deeper voices earn more money, have longer tenures, and manage bigger firms. To find your natural lower pitch, try exercises such as humming, and releasing tension in the body, so the laryngeal muscles relax, making the vocal folds longer and your pitch lower.  

3. Intonation 

This relates to the way your voice rises and falls. Being too monotone can bore people, but too much and it can sound patronising. However, things like ending nearly every sentence with a question can also make you sound unsure of yourself. Falling intonation at the end of sentences can convey confidence. 

4. Loudness 

It is difficult to adjust speech volume but be sensitive to other people’s reactions. Also try to start and finish your sentences with equal commitment and energy. 

5. Tone 

The tone of voice indicates your attitude to your words so use this wisely and creatively.  

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