Beyond Words: Manager Emotional Resilience and Financial Markets

Oleksandr Talavera (), Shuxing Yin and Mao Zhang
Additional contact information
Shuxing Yin: University of Sheffield
Mao Zhang: University of St Andrews

Discussion Papers from Department of Economics, University of Birmingham

Abstract: To what extent does managers’ emotional resilience - maintaining composure and positivity under public pressure - affect market reactions? Analyzing manager-analyst interactions during earnings conference calls, we show that managers' emotional resilience, expressed through vocal and verbal cues in response to analysts' tough questions, amplifies investor reactions to positive earnings news. However, when firms have negative earnings news, analysts incorporate vocal resilience, but not verbal responses into earnings forecasts and stock recommendations. We also observe that female managers are more vocally susceptible to analysts' negative emotions, a pattern not mirrored in verbal responses. Our findings contribute to understanding the impact of managerial communication under public pressure and have implications for the enhancement of corporate disclosure practices.

Keywords: emotional resilience; earnings calls; public pressure; vocal and verbal cues; financial markets; machine learning (search for similar items in EconPapers)
JEL-codes: G10 G14 G30 G41 J16 M14 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2022-10
New Economics Papers: this item is included in nep-big and nep-cmp
References: Add references at CitEc
Citations:

Downloads: (external link)
https://repec.cal.bham.ac.uk/pdf/22-11.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bir:birmec:22-11

Access Statistics for this paper

More papers in Discussion Papers from Department of Economics, University of Birmingham Contact information at EDIRC.
Bibliographic data for series maintained by Oleksandr Talavera ().