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Manager-Analyst Conversations in Earnings Conference Calls

47 Pages Posted: 16 Jun 2012 Last revised: 24 Aug 2017

Jason V. Chen

University of Illinois at Chicago

Venky Nagar

University of Michigan, Stephen M. Ross School of Business

Jordan Schoenfeld

University of Utah

Date Written: August 23, 2017

Abstract

This study conducts a linguistic analysis of the tone of the discussion-period conversations between management and analysts in earnings conference calls. Analysts are typically more neutral than management for the entire duration of the call, and the tones of both parties drift downwards as the call progresses. These results obtain across industries and time. Investors react significantly to analyst tone but not to management tone for the entire duration of the discussion. These findings collectively describe in detail the conversation-based information exchanges on earnings calls and suggest that analysts act as a neutral audience whose tone is of value to investors.

Keywords: Conference Calls, Corporate Disclosure, Financial Analysts

JEL Classification: G14, G20, D83

Suggested Citation

Chen, Jason V. and Nagar, Venky and Schoenfeld, Jordan, Manager-Analyst Conversations in Earnings Conference Calls (August 23, 2017). Ross School of Business Paper No. 1197. Available at SSRN: https://ssrn.com/abstract=2084488 or http://dx.doi.org/10.2139/ssrn.2084488

Jason V. Chen

University of Illinois at Chicago ( email )

1200 W Harrison St
Chicago, IL 60607
United States

Venky Nagar

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States
734-647-3292 (Phone)
734-764-3146 (Fax)

Jordan Schoenfeld (Contact Author)

University of Utah ( email )

1645 E. Campus Center
Salt Lake City, UT 84112
United States

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