Manager-analyst conversations in earnings conference calls

Jason V. Chen, Venky Nagar and Jordan Schoenfeld ()
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Jason V. Chen: University of Illinois
Venky Nagar: University of Michigan
Jordan Schoenfeld: Georgetown University

Review of Accounting Studies, 2018, vol. 23, issue 4, No 3, 1315-1354

Abstract: 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.

Keywords: Conference calls; Corporate disclosure; Financial analysts (search for similar items in EconPapers)
JEL-codes: D83 G14 G20 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (11)

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DOI: 10.1007/s11142-018-9453-3

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