Gender and Earnings Conference Calls
87 Pages Posted: 29 May 2020 Last revised: 2 Dec 2023
Date Written: March 21, 2023
Abstract
Using quarterly earnings conference call transcripts, we investigate gender issues in interactions between sell-side analysts and executives. We find that women are generally less “visible” on conference calls. Specifically, female analysts appear on calls less frequently, speak less, and ask fewer follow-up questions. Female analysts and executives exhibit less uncertainty, less numerical information, and fewer hesitations in their dialogue than their male counterparts. Female executives (analysts) are interrupted more (less) frequently. The above relations are mitigated with greater state-level attention to #MeToo. Further, we introduce a new measure of firm gender equality/similarity using the first principal component of nine gender-related features on conference calls. We find that gender equality is associated with positive market reaction and lower bid-ask spreads. Earnings call gender equality is positively associated with analysts’ following stock recommendation, forecast accuracy, and forecast speed, and negatively associated with analysts’ following dropped coverage and the number of revisions. Overall, our results suggest that gender equality on earnings conference calls improves market efficiency and benefits analysts’ forecasts by enhancing calls’ information content and flow.
Keywords: Analysts, Conference Calls, Conversation, Executives, Gender, Management, Sell-Side Analysts, Textual Analysis
JEL Classification: G10, G14, J16, M12, M14, M41
Suggested Citation: Suggested Citation