Earnings Conference Call Content and Stock Price: The Case of REITs

Doran, James; Peterson, David R.; Price, S. McKay

doi:10.1007/s11146-010-9266-z

Cited by 99 publications

(71 citation statements)

References 44 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…But this is not the case. Doran et al (2012) find that investors initially react to the wording of REIT conference calls, but that the explanatory power of the wording for cumulative abnormal returns ceases to be significant after the first two days. The results suggest something unique about the REIT disclosure environment, where REIT managers have a natural incentive to be unambiguous in their communication of non-financial information with investors.…”

Section: Introductionmentioning

confidence: 79%

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

Price

Seiler

Shen

2016

J Real Estate Finan Econ

Self Cite

View full text Add to dashboard Cite

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.

show abstract

Section: Introductionmentioning

confidence: 79%

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

Price

Seiler

Shen

2016

J Real Estate Finan Econ

Self Cite

View full text Add to dashboard Cite

show abstract

“…CEOs' language has been repeatedly shown to exhibit information that is relevant for financial market participants, for example, in analyses on earnings conference calls (Davis et al, 2015;Doran et al, 2012;Larcker & Zakolyukina, 2012;Price et al, 2012), or CEO letters (Boudt & Thewissen, 2016). Nevertheless, CEO speeches held at companies' annual general meetings have received no attention in studies of qualitative content analysis yet.…”

Section: Resultsmentioning

confidence: 99%

“…Arslan-Ayaydin et al (2015) find that managers adjust their language to specific situations at hand and inflate the use of positive language the higher their fraction of equity-based compensation. Doran et al (2012) and Price et al (2012) report that conference calls' positive sentiment is a significant predictor of subsequent returns and trading volume. Mayew and Venkatachalam (2012) and Hobson et al (2012) analyze conference call audio files using vocal emotion analysis software.…”

Section: Informational Content Of the Annual General Meetingmentioning

confidence: 99%

“…Recent research has acknowledged the value not only of quantitative data disclosures but also of qualitative information, predominantly in the form of the textual sentiment of business communication. Sentiment is typically examined via content analyses which have been applied on several types of business communication such as annual reports (Feldman et al, 2008;Jegadeesh & Wu, 2013;Loughran & McDonald, 2011, 2015, earnings press releases Davis & Tama-Sweet, 2012;Henry, 2008;Henry & Leone, 2016;Huang et al, 2014), IPO prospectuses (Demers & Vega, 2008;Ferris et al, 2013;Jegadeesh & Wu, 2013), CEO letters (Boudt & Thewissen, 2016), and earnings conference calls (Davis et al, 2015;Doran et al, 2012;Larcker & Zakolyukina, 2012;Price et al, 2012). In general, these studies find that qualitative information is indeed processed by investors and helps to predict future accounting returns, stock returns, stock volatility, and stock trading volume.…”

Section: Introductionmentioning

confidence: 99%

“…Similarly, Boudt and Thewissen (2016) report that CEOs strategically present negative and positive words in CEO letters in order to prompt a more positive perception by the reader. Price et al (2012) and Doran et al (2012) show that the tone of earnings conference calls -which are typically conducted by the firm's top management team -is a significant predictor of subsequent returns and trading volume. We therefore hypothesize that CEO speeches held at AGMs contain valuable qualitative information that should influence the market reaction to the AGM.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

CEO-Speeches and Stock Returns

Bannier

Pauls

2017

SSRN Journal

View full text Add to dashboard Cite

Natural Language Processing in Accounting, Auditing and Finance: A Synthesis of the Literature with a Roadmap for Future Research

Fisher

Garnsey

Hughes

2016

Intell. Sys. Acc. Fin. Mgmt.

154

112

View full text Add to dashboard Cite

Natural language processing (NLP) is a part of the artificial intelligence domain focused on communication between humans and computers. NLP attempts to address the inherent problem that while human communications are often ambiguous and imprecise, computers require unambiguous and precise messages to enable understanding. The accounting, auditing and finance domains frequently put forth textual documents intended to communicate a wide variety of messages, including, but not limited to, corporate financial performance, management's assessment of current and future firm performance, analysts' assessments of firm performance, domain standards and regulations as well as evidence of compliance with relevant standards and regulations. NLP applications have been used to mine these documents to obtain insights, make inferences and to create additional methodologies and artefacts to advance knowledge in accounting, auditing and finance. This paper synthesizes the extant literature in NLP in accounting, auditing and finance to establish the state of current knowledge and to identify paths for future research.of achieving human-like language processing for a range of tasks or applications' (Liddy, 2001). This implies, as demonstrated throughout this paper, that 'there are multiple methods or techniques from which to choose to accomplish a particular type of language analysis' (Liddy, 2001). We reference a variety of analytical methods that incorporate NLP data, at various 'levels of linguistic analysis' (Liddy, 2001). However, since 'NLP is considered a discipline within Artificial Intelligence (AI)' we focus most heavily on the AI-related applications of NLP (Liddy, 2001). Despite the plethora of analytical methods that are associated with and use data produced by NLP, it comprises a unique set of 'computational techniques' that should not be confused or conflated with the many analytical tools referenced in the text that follows.Fifty years ago Goldberg (1965) stated: 'it is scarcely an exaggeration to say that the problem of communication is the axial problem in accounting'. Accounting practice is replete with written documents intended to communicate such messages as, but not limited to: current accounting standards, past and expected future corporate performance (along multiple dimensions), policies and practices embodied by financial statements and the results of financial statement audits. The growth in digital and social media usage by businesses has further increased the volume of unstructured text documents. Since the dissemination of these documents and messages is now largely automated by and through computers, we believe that NLP research and applications have considerable potential to enhance communication in the areas of accounting, auditing and finance. Our paper is motivated by the desire to determine the state of the extant literature in NLP in accounting, auditing and finance so as to inform and guide future research efforts. ObjectivesThis paper examines the NLP literature in accounting, auditing and fi...

show abstract

Earnings Conference Call Content and Stock Price: The Case of REITs

Cited by 99 publications

References 44 publications

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

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

CEO-Speeches and Stock Returns

Natural Language Processing in Accounting, Auditing and Finance: A Synthesis of the Literature with a Roadmap for Future Research

Contact Info

Product

Resources

About