Non-answers during Conference Calls

We construct a novel measure of disclosure choice by firms. Our measure is computed using linguistic analysis of conference calls to identify whether a manager’s response to an analyst question is a “non-answer.” Using our measure, about 11% of analyst questions elicit non-answers from managers, a rate that is stable over time and similar across industries. A useful feature of our measure is that it enables an examination of disclosure choice within a call. Analyst questions with a negative tone, greater uncertainty, greater complexity, or requests for greater detail are more likely to trigger non-answers. We find performance-related questions tend to be associated with non-answers, and this association is weaker when performance news is favorable. We also find analyst questions about proprietary information are associated with non-answers, and this association is stronger when firm competition is more intense.

Keywords: Voluntary disclosure, asymmetric information, conference calls, textual analysis

JEL Classification: D82, D83, G14, M41

Suggested Citation: Suggested Citation

Gow, Ian D. and Larcker, David F. and Zakolyukina, Anastasia A., Non-answers during Conference Calls (December 1, 2023). Journal of Accounting Research, Forthcoming, Chicago Booth Research Paper No. 19-01, Fama-Miller Working Paper , Rock Center for Corporate Governance at Stanford University Working Paper No. 237, Available at SSRN: https://ssrn.com/abstract=3310360 or http://dx.doi.org/10.2139/ssrn.3310360