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

详细信息    查看全文

• 作者：Angela K. Davis ; Weili Ge ; Dawn Matsumoto ; Jenny Li Zhang
• 关键词：Conference call ; Tone ; Managerial style ; M41
• 刊名：Review of Accounting Studies
• 出版年：2015
• 出版时间：June 2015
• 年：2015
• 卷：20
• 期：2
• 页码：639-673
• 全文大小：521 KB
• 参考文献：Anik, L., Aknin, L., Norton, M., & Dunn, E. (2009). Feeling good about giving: the benefits (and costs) of self-interested charitable behavior. Working paper, Harvard Business School.
  Bamber, L., Jiang, J., & Wang, I. (2010). What’s my style? The influence of top managers and their personal backgrounds on voluntary corporate financial disclosure. The Accounting Review, 85, 1131-162.View Article
  Bertrand, M., & Schoar, A. (2003). Managing with style: the effect of managers on firm policies. The Quarterly Journal of Economics, 118, 1169-208.View Article
  Bowen, R., Davis, A., & Matsumoto, D. (2002). Do conference calls affect analysts-forecasts? The Accounting Review, 77(2), 285-16.View Article
  Chevalier, J., & Ellison, G. (1999). Are some mutual fund managers better than others? Cross- sectional patterns in behavior and performance. Journal of Finance, 54(3), 875-99.View Article
  Cohn, R. A., Lewellen, W. G., Lease, R. C., & Schlarbaum, G. G. (1975). Individual investor risk aversion and investment portfolio composition. The Journal of Finance, 30(2), 605-20.View Article
  Cummins, R. A., & Nistico, H. (2002). Maintaining life satisfaction: the role of positive cognitive bias. Journal of Happiness Studies, 3, 37-9.View Article
  Davis, G., Nolen-Hoeksema, S., & Larson, J. (1998). Making sense of loss and benefiting from the experience: two construals of meaning. Journal of Personality and Social Psychology, 75(2), 561-74.View Article
  Davis, A., Piger, J., & Sedor, L. (2012). Beyond the numbers: measuring the information content of earnings press release language. Contemporary Accounting Research, 29(3), 845-68.View Article
  Davis, A., & Tama-Sweet, I. (2012). Managers-use of language across alternative disclosure outlets: earnings press releases versus MD&A. Contemporary Accounting Research, 29(3), 804-37.View Article
  Demers, E., & Vega, C. (2014). Understanding the role of managerial optimism and uncertainty in the price formation process: evidence from the textual content of earnings announcements. Working paper, Univeristy of Virginia.
  Dyreng, S. D., Hanlon, M., & Maydew, E. L. (2010). The effects of managers on corporate tax avoidance. The Accounting Review, 85, 1163-189.View Article
  Fee, C. E., Hadlock, C., & Pierce, J. (2013). Managers with and without style: evidence using exogenous variation. Review of Financial Studies, 26, 1-5.View Article
  Fellner, G., & Maciejovsky, B. (2007). Risk attitude and market behavior: evidence from experimental asset markets. Journal of Economic Psychology, 28, 338-50.View Article
  Frankel, R., Johnson, M., & Skinner, D. (1999). An empirical examination of conference calls as a voluntary disclosure medium. Journal of Accounting Research, 37(1), 133-50.View Article
  Frankel, R., Mayew, W., & Sun, Y. (2009). Do pennies matter? Investor relations consequences of small negative earnings surprises. Review of Accounting Studies, 15(1), 220-42.View Article
  Ge, W., Matsumoto, D., & Zhang, J. (2011). Do CFOs have style? An empirical investigation of the effect of individual CFOs on accounting practices. Contemporary Accounting Research, 28(4), 1141-179.View Article
  Gibson, B., & Sanbonmatsu, D. (2004). Optimism, pessimism, and gambling: the downside of optimism. Personality and Social Psychology Bulletin, 30(2), 149-60.View Article
  Goodman-Delahunty, J., Granhag, P., Hartwig, M., & Loftus, E. (2010). Insightful or wishful: lawyers-ability to predict case outcomes. Psychology, Public Policy, and Law, 16(2), 133-57.View Article
  Graham, J., Harvey, C., & Puri, M. (2009). Managerial attitudes and corporate actions. Working paper, Duke University and National Bureau of Economic Research.
  Halpern, D. (2000). Sex differences in cognitive abilities (3rd ed.). New York: Psychology Press.
  Hambrick, D. C. (2007). Upper echelons theory: an update. Academy of Management Review, 32, 334-43.View Article
  Hambrick, D. C., & Finkelstein, S. (1987).?Managerial discretion: A bridge between polar views of organizational outcomes. In L. L. Cummings & B. Staw (Eds.),?Research in organizational behavior (Vol. 9, pp. 369-06).
  Hambrick, D. C., & Mason, P. A. (1984). The seasons of a CEO’s tenure. Academy of Management Review, 9, 193-06.
  Hart, R. P. (1984). Verbal style and the presidency: A computer-based analysis. Orlando, FL: Academic Press.
  Henry, E. (2006). Market reaction to verbal components of earnings press releases: event study using a predictive algorithm. Journal of Emerging Technologies in Accounting, 3, 1-9.View Article
  Henry, E. (2008). Are investors influenced by how earnings press releases are written? Journal of Business Communication, 45(4), 363-07.View Article
  Huang, X., Teoh, S. H., & Zhang, Y. (2014). Tone management. The Accounting Review, 89(3), 1083-113.View Article
  Kimbrough, M. (2005). The effect of conference calls on analyst and market underreaction to earni
• 作者单位：Angela K. Davis (1)
  Weili Ge (2)
  Dawn Matsumoto (2)
  Jenny Li Zhang (3)
  
  1. Charles H. Lundquist School of Business, University of Oregon, 1208 University of Oregon, Eugene, OR, 97403-1208, USA
  2. Foster School of Business, University of Washington, Box 353226, Seattle, WA, 98195-3200, USA
  3. Sauder School of Business, The University of British Columbia, 2053 Main Mall, Vancouver, BC, V6T 1Z2, Canada
  
• 刊物主题：Accounting/Auditing; Finance/Investment/Banking; Public Finance & Economics;
• 出版者：Springer US
• ISSN：1573-7136

文摘

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.