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Do Investors Infer Vocal Cues from CEOs During Quarterly REIT Conference Calls?

Author

Listed:
  • S. McKay Price

    (Lehigh University)

  • Michael J. Seiler

    (College of William & Mary)

  • Jiancheng Shen

    (Regent University)

Abstract

We examine the investor reaction to emotionally charged information. Using audio files of quarterly earnings conference calls and specialized Layered Voice Analysis software, we isolate the emotional content of managers’ vocal cues. With results that are both statistically and economically significant, we find that executive emotion is positively related to investors’ initial reaction. Moreover, this strong investor reaction to emotional signals by REIT managers appears to be justified, suggesting that credible, value-relevant information is contained in the emotion related signals. However, we also find some limited evidence of a partial reversal in subsequent trading windows, suggesting that investors may second guess themselves or fear they overreacted.

Suggested Citation

  • S. McKay Price & Michael J. Seiler & Jiancheng Shen, 2017. "Do Investors Infer Vocal Cues from CEOs During Quarterly REIT Conference Calls?," The Journal of Real Estate Finance and Economics, Springer, vol. 54(4), pages 515-557, May.
    • Handle: RePEc:kap:jrefec:v:54:y:2017:i:4:d:10.1007_s11146-016-9557-0
    DOI: 10.1007/s11146-016-9557-0
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    References listed on IDEAS

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    Cited by:

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    4. John Griffith & Mohammad Najand & Jiancheng Shen, 2020. "Emotions in the Stock Market," Journal of Behavioral Finance, Taylor & Francis Journals, vol. 21(1), pages 42-56, January.

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    More about this item

    Keywords

    REITs; Conference calls; Disclosure; Stock returns; Vocal cues; Layered voice analysis;
    All these keywords.

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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