Say it again Sam: the information content of corporate conference calls

Say it again Sam: the information content of corporate conference calls This paper examines information-content of corporate conference calls. It studies the determinants, and the consequences, of information production. To facilitate this study, I develop a novel measure of information-content which analyzes every word choice made by management during both sessions of the call. In a sample of S&P 1500 firms from 2001 to 2012, this new measure of information-content explains cumulative abnormal returns. It shows how CEOs produce (suppress) information during the conference call. It shows how analyst participation in the call improves information production. It shows that a differential value is placed on information conditioned on the market segment of the firm. I contrast the effectiveness of this new measure to that of the conventional methodologies of tone and word-counting. I provide evidence that this new information-content measure is better suited to conference calls than are the other two. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Quantitative Finance and Accounting Springer Journals

Say it again Sam: the information content of corporate conference calls

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Publisher
Springer US
Copyright
Copyright © 2015 by Springer Science+Business Media New York
Subject
Finance; Corporate Finance; Accounting/Auditing; Econometrics; Operation Research/Decision Theory
ISSN
0924-865X
eISSN
1573-7179
D.O.I.
10.1007/s11156-015-0542-0
Publisher site
See Article on Publisher Site

Abstract

This paper examines information-content of corporate conference calls. It studies the determinants, and the consequences, of information production. To facilitate this study, I develop a novel measure of information-content which analyzes every word choice made by management during both sessions of the call. In a sample of S&P 1500 firms from 2001 to 2012, this new measure of information-content explains cumulative abnormal returns. It shows how CEOs produce (suppress) information during the conference call. It shows how analyst participation in the call improves information production. It shows that a differential value is placed on information conditioned on the market segment of the firm. I contrast the effectiveness of this new measure to that of the conventional methodologies of tone and word-counting. I provide evidence that this new information-content measure is better suited to conference calls than are the other two.

Journal

Review of Quantitative Finance and AccountingSpringer Journals

Published: Oct 28, 2015

References

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