Conference Call Tone and Stock Returns: Evidence from the Stock Exchange of Hong Kong1. (21st September 2017)

• Record Type: Journal Article
• Authors: Brockman, Paul; Li, Xu; Price, S. McKay
• Is Part Of: Asia-Pacific journal of financial studies. Volume 46:Number 5(2017:Oct.)
• Page Start: 667
• Page End: 685
• Publication Date: 2017-09-21
• Subjects: Conference calls -- Textual analysis -- Investor sophistication -- Financial analysts -- Hong Kong Stock Exchange; Pacific Area -- Economic conditions -- Periodicals; Finance -- Asia -- Periodicals; Finance -- Pacific Area -- Periodicals; Asia -- Economic conditions -- Periodicals; 332.09505
• DOI: 10.1111/ajfs.12186
• Languages: English
• ISSNs: 2041-9945

Abstract

Abstract: We investigate market reactions to manager and analyst tones during earnings conference calls using company transcripts from the Stock Exchange of Hong Kong (SEHK). This is the first study to examine the role of conference call tones outside of a US setting. Consistent with previous US‐based results, we find that positive tones lead to higher stock returns. In contrast to US‐based results, we show that investors place more emphasis on managerial tones than on analyst tones. We also find that stock market reactions to conference call tones are stronger for firms with a sophisticated investor base.