Do Investors Infer Vocal Cues from CEOs During Quarterly REIT Conference Calls?

48 Pages Posted: 20 Feb 2016 Last revised: 8 Nov 2017

See all articles by S. McKay Price

S. McKay Price

Lehigh University - Perella Department of Finance

Michael Seiler

College of William and Mary

Jiancheng Shen

Regent University - Finance

Multiple version iconThere are 2 versions of this paper

Date Written: February 19, 2016

Abstract

We examine the investor reaction to emotionally charged information. Using audio files of quarterly earnings conference calls and specialized Layered Voice Analysis software, we isolate the emotional content of managers’ vocal cues. With results that are both statistically and economically significant, we find that executive emotion is positively related to investors’ initial reaction. Moreover, this strong investor reaction to emotional signals by REIT managers appears to be justified, suggesting that credible, value-relevant information is contained in the emotion related signals. However, we also find some limited evidence of a partial reversal in subsequent trading windows, suggesting that investors may second guess themselves or fear they overreacted.

Keywords: REITs, Conference calls, Disclosure, Stock returns, Vocal cues, Layered voice analysis

JEL Classification: D80, G10, G12, G14

Suggested Citation

Price, S. McKay and Seiler, Michael and Shen, Jiancheng, Do Investors Infer Vocal Cues from CEOs During Quarterly REIT Conference Calls? (February 19, 2016). Journal of Real Estate Finance and Economics, Vol. 54, No. 4, pp. 515-557, 2017. Available at SSRN: https://ssrn.com/abstract=2735141 or http://dx.doi.org/10.2139/ssrn.2735141

S. McKay Price (Contact Author)

Lehigh University - Perella Department of Finance ( email )

621 Taylor Street
Bethlehem, PA 18015
United States
610-758-4787 (Phone)

HOME PAGE: http://www.mckayprice.com

Michael Seiler

College of William and Mary ( email )

P.O. Box 8795
Williamsburg, VA 23185
United States

Jiancheng Shen

Regent University - Finance ( email )

1000 Regent University Drive
Virginia Beach, VA 23464
United States

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