Managers'Abnormal Tone and Stock Price Delay—A Textual Analysis Based on Earnings Communication Conferences of Chinese Listed Companies
Earnings communication conferences of Chinese listed companies can re-alize real-time interaction between managers and investors,therefore,the managers'tone is more likely to reflect the true information of the company in a realistic way,improving the efficiency of stock market pricing.This paper explores the impact of managers'abnormal tone at earnings communication conferences on stock price delay,based on the text analysis of Chinese A-share listed companies from 2008 to 2020.The results show that managers'abnormal tone at earnings communication conferences significantly and negatively impacts stock price delays of listed compa-nies.Mechanism analysis finds that on the one hand,managers'abnormal tone at earnings communication conferences significantly predicts future firm performance,suggesting that stock price delay is influenced through the signaling mechanism with incremental information content;on the other hand,abnormal tone also significantly and positively relates both company information transparency and media coverage,suggesting that the corporate governance mechanism plays the role through improving the company's internal and external governance environment.In addition,the neg-ative relationship between abnormal tone and stock price delay is more pronounced in firms with higher levels of earnings management,fewer analysts following,less at-tention by research reports and private firms.The above results suggest that the managemers'abnormal tone at earnings communication conferences has incremental information content,which can increase the speed of new information absorption and integration into the stock price and alleviate the stock price delay.These findings have important implications for improving stock market pricing efficiency,alleviating market information asymmetry,and promoting high-quality information disclosure of China's listed companies.
earnings communication conferencesabnormal tonestock price delaytextual analysis
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