Fixed income conference calls

Gus De Franco, Thomas Shohfi, Da Xu and Zhu, Zhiwei (Vivi)

Journal of Accounting and Economics, 2023, vol. 75, issue 1

Abstract: We study the determinants and the informational role of firms' fixed income conference calls, a unique form of voluntary disclosure that deviates from the traditional multi-purpose firm disclosures intended for all stakeholders. We find that fixed income calls are more likely to be held by firms that have more debt, lack credit ratings or have publicly traded equity, are foreign, or are experiencing losses. In a content analysis using a sample of public firms, we find that these calls discuss debt-equity conflict events, such as share repurchases, to a greater degree relative to a matched sample of earnings conference calls. Finally, we document that credit markets react to these calls, consistent with the calls providing investors new information. Overall, these results are consistent with fixed income calls meeting the differential informational demands of debt versus equity investors.

Keywords: Conference calls; Corporate bonds; Corporate debt; Debt-equity conflict events; Debt investors; Fixed income (search for similar items in EconPapers)
JEL-codes: G12 G14 G32 M49 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaecon:v:75:y:2023:i:1:s0165410122000416

DOI: 10.1016/j.jacceco.2022.101518

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