The effect of manager-specific optimism on the tone of earnings conference calls

• 成果类型: Article
• 署名作者: Davis, Angela K.; Ge, Weili; Matsumoto, Dawn; Zhang, Jenny Li
• 署名单位: University of Oregon; University of Washington; University of Washington Seattle; University of British Columbia
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1007/s11142-014-9309-4
• 发表日期: 2015
• 页码: 639-673
• 关键词: upper echelons; risk-aversion; TOP MANAGERS; disclosure; style; pessimism; language; BEHAVIOR

摘要

The use of more or less positive language in corporate disclosures has been the subject of increased interest in the academic literature. We add to this stream of research by examining whether there is a manager-specific component in the tone of earnings-announcement related conference calls. We find that the tone of conference calls that is not explained by current performance, future performance, and strategic incentives has a significant manager-specific component. We also find that tone is significantly associated with manager-specific factors such as early career experiences and involvement in charitable organizations. Taken together, our findings indicate that, in addition to reflecting current and future performance, the tone of conference calls is significantly influenced by a manager-specific tendency to be optimistic or pessimistic. We also find some evidence of a manager-specific component to conference call returns, which is consistent with manager-specific optimism impacting investors' interpretation of disclosures made in conference calls.