Manager-Analyst Conversations in Earnings Conference Calls
47 Pages Posted: 16 Jun 2012 Last revised: 24 Aug 2017
Date Written: August 23, 2017
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: Suggested Citation