The Annual General Meeting Revisited: The Role of the CEO Speech

41 Pages Posted: 17 Nov 2016 Last revised: 12 Jul 2019

See all articles by Christina E. Bannier

Christina E. Bannier

Justus-Liebig-University Giessen

Thomas Pauls

Goethe University Frankfurt

Andreas Walter

University of Giessen - Department of Financial Services

Multiple version iconThere are 2 versions of this paper

Date Written: July 11, 2019

Abstract

We analyze the informational value of the Annual General Meeting (AGM) for investors’ decision-making. As the AGM is typically preceded by several information disclosures, previous research has shown it to trigger only a marginal market reaction. We consider the AGM, and particularly the tone of the CEO’s speech at the AGM, as a hitherto overlooked feature and compile a unique comprehensive dataset of 457 German AGMs between 2008 and 2016. We show that the sentiment of the CEO speech as well as other components of the AGM are significantly related to subsequent return reactions and future firm profitability.

Keywords: Annual general meeting, market efficiency, CEO speeches, textual sentiment

JEL Classification: G02, G12, G14

Suggested Citation

Bannier, Christina E. and Pauls, Thomas and Walter, Andreas, The Annual General Meeting Revisited: The Role of the CEO Speech (July 11, 2019). Available at SSRN: https://ssrn.com/abstract=2869785 or http://dx.doi.org/10.2139/ssrn.2869785

Christina E. Bannier

Justus-Liebig-University Giessen ( email )

Licher Str. 62
Gießen, 35394
Germany
+49 641 99 22551 (Phone)

Thomas Pauls (Contact Author)

Goethe University Frankfurt ( email )

Theodor-W.-Adorno-Platz 3
Frankfurt am Main, 60323
Germany

Andreas Walter

University of Giessen - Department of Financial Services ( email )

Betriebswirtschaftslehre V
Giessen, 35394
Germany

HOME PAGE: http://wiwi.uni-giessen.de/ma/dat/walter/Andreas_Walter/

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