Who Consumes Firm Disclosures? Evidence from Earnings Conference Calls

The Accounting Review (Forthcoming)

50 Pages Posted: 30 Aug 2015 Last revised: 7 Mar 2019

See all articles by Anne Heinrichs

Anne Heinrichs

Columbia Business School - Accounting, Business Law & Taxation

Jihwon Park

Harvard University - Business School (HBS)

Eugene F. Soltes

Harvard University - Business School (HBS)

Date Written: June 6, 2018

Abstract

Using a set of proprietary records, we examine who consumes quarterly earnings conference calls and under which circumstances the calls are consumed. While there is significant interest in calls by institutional investors and sell-side analysts, we find that investors who do not hold a position in the firm are a leading consumer. We show that buy-side non-holders who consume calls are more likely to hold positions in competitors and to purchase the stock in the future. In addition, many investors who hold large positions only consume calls periodically. We also document a benefit of consuming calls by finding that the consumption of calls is associated with more informed trading decisions. Overall, our investigation illuminates the actual consumption of conference calls by different consumers and the potential benefits of consuming additional firm disclosures.

Suggested Citation

Heinrichs, Anne and Park, Jihwon and Soltes, Eugene F., Who Consumes Firm Disclosures? Evidence from Earnings Conference Calls (June 6, 2018). The Accounting Review (Forthcoming). Available at SSRN: https://ssrn.com/abstract=2653088 or http://dx.doi.org/10.2139/ssrn.2653088

Anne Heinrichs

Columbia Business School - Accounting, Business Law & Taxation ( email )

3022 Broadway
New York, NY 10027
United States

Jihwon Park

Harvard University - Business School (HBS) ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

Eugene F. Soltes (Contact Author)

Harvard University - Business School (HBS) ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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