Earnings Conference Calls and Institutional Monitoring: Evidence from Textual Analysis

Forthcoming, Journal of Financial Research

53 Pages Posted: 11 Sep 2019

See all articles by Arash Amoozegar

Arash Amoozegar

Government of Canada - Export Development Canada

Dave Berger

Oregon State University

Xueli Cao

FedEx Services

Kuntara Pukthuanthong

University of Missouri, Columbia

Date Written: September 4, 2019

Abstract

We document the effects of institutional investors on the qualitative information disclosure of firms within earnings conference calls. Utilizing conference call and institutional ownership data between 2005 and 2016, we find that aggregate institutional ownership dampens conference call tone. The effects of institutional investors on tone are causal based on results from indexed firms. Consistent with hypotheses regarding investor’s horizon, short-term institutional investors are associated with greater conference call tone, as well as potentially opportunistic trading, while long-term investors decrease tone. Market participants can generally disentangle the impact of institutional investors on tone based on investor type.

Keywords: institutional investors, conference call, textual tone, indexing

JEL Classification: G14, G23, G30, O16

Suggested Citation

Amoozegar, Arash and Berger, Dave and Cao, Xueli and Pukthuanthong, Kuntara, Earnings Conference Calls and Institutional Monitoring: Evidence from Textual Analysis (September 4, 2019). Forthcoming, Journal of Financial Research. Available at SSRN: https://ssrn.com/abstract=3447667

Arash Amoozegar

Government of Canada - Export Development Canada ( email )

Canada

Dave Berger (Contact Author)

Oregon State University ( email )

Bexell Hall 200
Corvallis, OR 97331
United States

Xueli Cao

FedEx Services ( email )

3640 Hacks Croiss Road
Building D, 3rd Floor
Memphis, TN 38125-8800
United States

Kuntara Pukthuanthong

University of Missouri, Columbia ( email )

Robert J. Trulaske, Sr. College of Business
403 Cornell Hall
Columbia, MO 65211
United States
6198076124 (Phone)

HOME PAGE: http://https://kuntara.weebly.com

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