The Effects of Conversation Fillers and Communication Mode on Investor Judgments

51 Pages Posted: 23 Oct 2017 Last revised: 2 Jul 2021

See all articles by Clarence Goh

Clarence Goh

Singapore Management University - School of Accountancy

Hun-Tong Tan

Nanyang Business School, Nanyang Technological University

Date Written: June 30, 2020

Abstract

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

Goh, Clarence and Tan, Hun-Tong, The Effects of Conversation Fillers and Communication Mode on Investor Judgments (June 30, 2020). Available at SSRN: https://ssrn.com/abstract=3056866 or http://dx.doi.org/10.2139/ssrn.3056866

Clarence Goh (Contact Author)

Singapore Management University - School of Accountancy ( email )

60 Stamford Road
Singapore 178900
Singapore

Hun-Tong Tan

Nanyang Business School, Nanyang Technological University ( email )

Singapore, 639798
Singapore
+65 6790 4819 (Phone)
+65 6793 7956 (Fax)

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