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Manager-analyst conversations in earnings conference calls

Author

Listed:
  • Jason V. Chen

    (University of Illinois)

  • Venky Nagar

    (University of Michigan)

  • Jordan Schoenfeld

    (Georgetown University)

Abstract

Prior research finds that intraday stock prices move considerably during the discussion period of earnings conference calls. In this study, we explore what features of the manager-analyst dialogue during the discussion drive these price movements. We textually analyze the tone of managers and analysts and find that intraday prices react significantly to analyst tone, but not to management tone, for the full duration of the discussion. This effect strengthens when analyst tone is relatively negative. We then present intraday visual evidence that analysts are more neutral than managers over the call and that the tones of both parties drift downward as the call progresses. Overall, our findings illustrate how manager-analyst information exchanges evolve on earnings calls and indicate that analysts are the participants on earnings calls whose comments move stock prices during the discussion.

Suggested Citation

  • Jason V. Chen & Venky Nagar & Jordan Schoenfeld, 2018. "Manager-analyst conversations in earnings conference calls," Review of Accounting Studies, Springer, vol. 23(4), pages 1315-1354, December.
    • Handle: RePEc:spr:reaccs:v:23:y:2018:i:4:d:10.1007_s11142-018-9453-3
    DOI: 10.1007/s11142-018-9453-3
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    3. Li, Ken, 2022. "Textual fundamentals in earnings press releases," Advances in accounting, Elsevier, vol. 57(C).
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    6. Chen, Yuan & Han, Dongmei & Zhou, Xiaofeng, 2023. "Mining the emotional information in the audio of earnings conference calls : A deep learning approach for sentiment analysis of securities analysts' follow-up behavior," International Review of Financial Analysis, Elsevier, vol. 88(C).

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    More about this item

    Keywords

    Conference calls; Corporate disclosure; Financial analysts;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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