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Say it again Sam: the information content of corporate conference calls

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  • James Cicon

    (University of Central Missouri)

Abstract

This paper examines information-content of corporate conference calls. It studies the determinants, and the consequences, of information production. To facilitate this study, I develop a novel measure of information-content which analyzes every word choice made by management during both sessions of the call. In a sample of S&P 1500 firms from 2001 to 2012, this new measure of information-content explains cumulative abnormal returns. It shows how CEOs produce (suppress) information during the conference call. It shows how analyst participation in the call improves information production. It shows that a differential value is placed on information conditioned on the market segment of the firm. I contrast the effectiveness of this new measure to that of the conventional methodologies of tone and word-counting. I provide evidence that this new information-content measure is better suited to conference calls than are the other two.

Suggested Citation

  • James Cicon, 2017. "Say it again Sam: the information content of corporate conference calls," Review of Quantitative Finance and Accounting, Springer, vol. 48(1), pages 57-81, January.
    • Handle: RePEc:kap:rqfnac:v:48:y:2017:i:1:d:10.1007_s11156-015-0542-0
    DOI: 10.1007/s11156-015-0542-0
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    Cited by:

    1. Robert Fraunhoffer & Ho Young Kim & Dirk Schiereck, 2018. "Value Creation in M&A Transactions, Conference Calls, and Shareholder Protection," IJFS, MDPI, vol. 6(1), pages 1-21, January.
    2. Jiangyuan Wang & Guangqiang Liu & Qisong Xiong, 2020. "Institutional investors’ information seeking and stock price crash risk: nonlinear relationship based on management’s opportunistic behaviour," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(5), pages 4621-4649, December.
    3. D. G. DeBoskey & Yan Luo & Linying Zhou, 2019. "CEO power, board oversight, and earnings announcement tone," Review of Quantitative Finance and Accounting, Springer, vol. 52(2), pages 657-680, February.
    4. Devrimi Kaya & Christian Maier & Tobias Böhmer, 2020. "Empirische Kapitalmarktforschung zu Conference Calls: Eine Literaturanalyse [Empirical Capital Market Research on Conference Calls: A Literature Review]," Schmalenbach Journal of Business Research, Springer, vol. 72(2), pages 183-212, June.

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    More about this item

    Keywords

    Firm performance; Valuation; Capital markets; Conference calls; Information content; Content analysis;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G29 - Financial Economics - - Financial Institutions and Services - - - Other
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • C00 - Mathematical and Quantitative Methods - - General - - - General

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