The value of verbal information
- TO MAKE PROFITABLE INVESTMENT DECISIONS, INVESTORS NEED TO ASSESS THE FINANCIAL FUTURE OF FIRMS. DUE TO INVESTORS’ LACK OF INTERNAL INFORMATION ABOUT THE FIRMS’ FUTURE PROSPECTS, THEY OFTEN HAVE TO RELY ON MANAGERS’ VERBAL STATEMENTS FOR THIS TASK. HOWEVER, AS MANAGERS MIGHT HAVE AN INCENTIVE TO PRESENT POSITIVELY BIASED INFORMATION, THE VALUE OF THEIR STATEMENTS FOR INVESTORS IS NOT CLEAR. IN THIS REPORT, WE SHOW HOW TEXTUAL ANALYSIS TOOLS CAN BE USED TO ASSESS THE VALUE OF MANAGERS’ VERBAL STATEMENTS DURING EARNINGS CONFERENCE CALLS FOR INVESTORS. WE FIND THAT IN PARTICULAR MANAGERS’ NEGATIVE STATEMENTS SIGNI FICANTLY PREDICT LOWER FUTURE EARNINGS.
| Author: | Maximilian Matthe, Alexander HillertGND |
|---|---|
| URN: | urn:nbn:de:hebis:30:3-580243 |
| ISSN: | 1866-1238 |
| Parent Title (English): | EFL quarterly : an E-Finance Lab publication |
| Publisher: | E-Finance Lab e.V. |
| Place of publication: | Frankfurt am Main |
| Document Type: | Article |
| Language: | English |
| Year of Completion: | 2018 |
| Year of first Publication: | 2018 |
| Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2021/01/25 |
| Volume: | 2018 |
| Issue: | 2 |
| Page Number: | 3 |
| First Page: | 6 |
| Last Page: | 8 |
| HeBIS-PPN: | 477496105 |
| Institutes: | Angeschlossene und kooperierende Institutionen / E-Finance Lab e.V. |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| Sammlungen: | Universitätspublikationen |
| Licence (German): |  Deutsches Urheberrecht |
