Non-answers during Conference Calls

60 Pages Posted: 4 Jan 2019 Last revised: 31 Jan 2019

See all articles by Ian D. Gow

Ian D. Gow

University of Melbourne

David F. Larcker

Stanford University - Graduate School of Business

Anastasia A. Zakolyukina

University of Chicago - Booth School of Business

Date Written: January 3, 2019


We construct a novel measure of disclosure choice by firms. Our measure uses linguistic analysis of conference calls to flag a manager’s response as providing an explicit “non-answer” to an analyst’s question. Using our measure, about 11% of questions elicit non-answers, a rate that is stable over time and similar across industries. Consistent with extant theory, we find firms are less willing to disclose when competition is more intense, but more willing to disclose prior to raising capital. An important feature of our measure is that it yields several observations for each firm-quarter, which allows us to examine disclosure choice within a call as a function of properties of the question. We find product-related questions are associated with non-answers, and this association is stronger when competition is more intense, suggesting product-related information has higher proprietary cost. While firms are more forthcoming prior to raising capital, the within-call analyses for future-performance-related questions shows firms are less likely to answer future-performance-related questions shortly before equity or debt offerings when legal liability is higher.

Keywords: linguistic analysis, conference calls

Suggested Citation

Gow, Ian D. and Larcker, David F. and Zakolyukina, Anastasia A., Non-answers during Conference Calls (January 3, 2019). Chicago Booth Research Paper No. 19-01; Fama-Miller Working Paper ; Rock Center for Corporate Governance at Stanford University Working Paper No. 237. Available at SSRN: or

Ian D. Gow

University of Melbourne ( email )

185 Pelham Street
Carlton, Victoria 3053

David F. Larcker

Stanford University - Graduate School of Business ( email )

Graduate School of Business
518 Memorial Way
Stanford, CA 94305-5015
United States
650-725-6159 (Phone)

Anastasia A. Zakolyukina (Contact Author)

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773.834.4838 (Phone)
773.926.0941 (Fax)

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