The Effects of Conversation Fillers and Communication Mode on Investor Judgments
51 Pages Posted: 23 Oct 2017 Last revised: 2 Jul 2021
Date Written: June 30, 2020
Conference calls are a common way for firms to disseminate information to investors and analysts. We use controlled experiments to examine, in the context of the question and answer segment of conference calls, whether investors’ investment judgments are jointly influenced by a CEO’s use of conversation fillers and the communication mode of these calls. We find that conversation fillers have a smaller negative influence on investment judgments when conference calls are transmitted via transcripts than audio recordings. We further find that the effects of conversation fillers on investors’ investment judgments are sequentially mediated by investors’ perceptions of managerial traits and argument strength. We also provide evidence that hedges have more negative effects on investor judgments than hesitations.
Keywords: verbal hesitations; non-verbal hesitations; hedges; audio recordings; transcripts; investor judgments
JEL Classification: G18, G41, M41, M48
Suggested Citation: Suggested Citation