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Conference Call Disclosures and Firm Performance: An Empirical Analysis of the Length and Content of Earnings-Related Conference Calls
Dawn A. Matsumoto, University of Washington
Maarten Pronk, Erasmus University Rotterdam & Tilburg University
Erik Roelofsen, Erasmus University Rotterdam
ABSTRACT. Using a sample of over 10,000 earnings-related conference call transcripts, we examine the determinants of within-firm variation in the length of managers’ presentation and analyst discussion periods during conference calls. We find that managers’ presentations are longer when reporting poor performance and when earnings are a potentially downward-biased signal of future performance. In contrast, prior studies generally find firms disclose more when performance is good. We also find that analyst discussion periods are longer when market performance is poor, suggesting that the non-earnings related information disclosed in the presentation is insufficient for analysts’ information needs. Finally, we find that longer calls are associated with larger price reactions, larger trading volume, larger analyst forecast revisions and improvements in analysts’ forecast accuracy – indicating longer calls are more informative to the market.
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