The Impact of Concurrent Conference Calls on the Information Content of Earnings Announcements

42 Pages Posted: 1 Mar 2002

See all articles by Mark J. Kohlbeck

Mark J. Kohlbeck

Florida Atlantic University - School of Accounting

Matthew J. Magilke

Claremont McKenna College - Robert Day School of Economics and Finance

Date Written: February 2002

Abstract

We investigate the association of concurrent conference calls with the previously documented over-time increase in information content of earnings announcements. Conference calls are typically held on the same day as an earnings announcement and provide a source of competing information. We expect the increase in the information content of earnings announcements is actually a byproduct of either growth in number or increase in information content of concurrent conference calls. We find that the combination of additional information provided by conference calls and the increased conference call activity during the sample period is the source of the previously documented increase in information content of earnings. After controlling for conference calls, we find that the information content of earnings has, at best, remained constant during the period from 1995 to 2000 and for smaller quintile firms has actually decreased.

Keywords: Earnings announcements, Conference calls

JEL Classification: M41, G29, G12

Suggested Citation

Kohlbeck, Mark J. and Magilke, Matthew J., The Impact of Concurrent Conference Calls on the Information Content of Earnings Announcements (February 2002). Available at SSRN: https://ssrn.com/abstract=302230 or http://dx.doi.org/10.2139/ssrn.302230

Mark J. Kohlbeck (Contact Author)

Florida Atlantic University - School of Accounting ( email )

777 Glades Avenue
KH 119
Boca Raton, FL 33431-0991
United States
561-297-1363 (Phone)

Matthew J. Magilke

Claremont McKenna College - Robert Day School of Economics and Finance ( email )

500 E. Ninth St.
Claremont, CA 91711-6420
United States

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