Selected Working Papers
Gender and Analyst Reports
with Bill Francis, Gilna Samuel, Kate Suslava, and Daqi Xin
Abstract: We examine gender differences in characteristics of sell-side analyst reports. We find that female analyst reports are shorter and more readable. Consistent with an “ethical standard” explanation, the textual sentiment of female analyst reports is less optimistic. Moreover, female analyst reports contain less financially oriented content, are more long-term oriented, and are less likely to be issued in response to coverage firm earnings announcements. Readability, length, and sentiment of female analysts’ reports induce different market reactions than their male counterparts, yet female analysts improve report readability more and increase objectivity over their career than male analysts do. Our results provide evidence of gender stereotyping in the analyst profession.
Gender and Earnings Conference Calls
with Nerissa Brown, Bill Francis, Wenyao Hu, Tengfei Zhang, and Daqi Xin [SSRN]
Abstract: Using quarterly earnings conference call transcripts, we investigate gender issues in interactions between sell-side analysts and executives. We find that women are generally less “visible” on conference calls. Specifically, female analysts appear on calls less frequently, speak less, and ask fewer follow-up questions. Female analysts and executives exhibit less uncertainty, less numerical information, and fewer hesitations in their dialogue than their male counterparts. Female executives (analysts) are interrupted more (less) frequently. The above relations are mitigated with greater state-level attention to #MeToo. Further, we introduce a new measure of firm gender equality/similarity using the first principal component of nine gender-related features on conference calls. We find that gender equality is associated with positive market reaction and lower bid-ask spreads. Earnings call gender equality is positively associated with analysts’ following stock recommendation, forecast accuracy, and forecast speed, and negatively associated with analysts’ following dropped coverage and the number of revisions. Overall, our results suggest that gender equality on earnings conference calls improves market efficiency and benefits analysts’ forecasts by enhancing calls’ information content and flow.
Special Conference Calls
with Wenyao Hu
Abstract: We investigate the determinants and market consequences of special conference calls, a meeting held by publicly-traded companies in which executives provide an overview and discussion of specific unscheduled events related to the firm. We find that the decision to host a special call is related to the uncertainty level within the firm’s business, measured by R&D intensity. We show that equity market reactions are generally positive for special conference calls and, importantly, are incrementally significant relative to firms issuing only a press release addressing similar topics. Special conference calls exhibit significantly different content characteristics than typical earnings calls. Incorporating a Latent Dirichlet allocation (LDA) model examining textual content, we classify special conference calls into four major types —business updates, strategic changes, and (un)successful clinical drug trials. Our paper adds to the growing literature examining different types of interactive firm disclosures by documenting the increasing frequency and importance of special conference calls.
with Bill Francis, Gilna Samuel, Kate Suslava, and Daqi Xin
Abstract: We examine gender differences in characteristics of sell-side analyst reports. We find that female analyst reports are shorter and more readable. Consistent with an “ethical standard” explanation, the textual sentiment of female analyst reports is less optimistic. Moreover, female analyst reports contain less financially oriented content, are more long-term oriented, and are less likely to be issued in response to coverage firm earnings announcements. Readability, length, and sentiment of female analysts’ reports induce different market reactions than their male counterparts, yet female analysts improve report readability more and increase objectivity over their career than male analysts do. Our results provide evidence of gender stereotyping in the analyst profession.
Gender and Earnings Conference Calls
with Nerissa Brown, Bill Francis, Wenyao Hu, Tengfei Zhang, and Daqi Xin [SSRN]
Abstract: Using quarterly earnings conference call transcripts, we investigate gender issues in interactions between sell-side analysts and executives. We find that women are generally less “visible” on conference calls. Specifically, female analysts appear on calls less frequently, speak less, and ask fewer follow-up questions. Female analysts and executives exhibit less uncertainty, less numerical information, and fewer hesitations in their dialogue than their male counterparts. Female executives (analysts) are interrupted more (less) frequently. The above relations are mitigated with greater state-level attention to #MeToo. Further, we introduce a new measure of firm gender equality/similarity using the first principal component of nine gender-related features on conference calls. We find that gender equality is associated with positive market reaction and lower bid-ask spreads. Earnings call gender equality is positively associated with analysts’ following stock recommendation, forecast accuracy, and forecast speed, and negatively associated with analysts’ following dropped coverage and the number of revisions. Overall, our results suggest that gender equality on earnings conference calls improves market efficiency and benefits analysts’ forecasts by enhancing calls’ information content and flow.
Special Conference Calls
with Wenyao Hu
Abstract: We investigate the determinants and market consequences of special conference calls, a meeting held by publicly-traded companies in which executives provide an overview and discussion of specific unscheduled events related to the firm. We find that the decision to host a special call is related to the uncertainty level within the firm’s business, measured by R&D intensity. We show that equity market reactions are generally positive for special conference calls and, importantly, are incrementally significant relative to firms issuing only a press release addressing similar topics. Special conference calls exhibit significantly different content characteristics than typical earnings calls. Incorporating a Latent Dirichlet allocation (LDA) model examining textual content, we classify special conference calls into four major types —business updates, strategic changes, and (un)successful clinical drug trials. Our paper adds to the growing literature examining different types of interactive firm disclosures by documenting the increasing frequency and importance of special conference calls.
Selected Publications
- Buy the Dip? (with Stefano Bonini and Majeed Simaan) European Financial Management, Accepted [SSRN]
- Do Green Business Practices License Self-Dealing or Prime Prosociality? Cross-Domain Evidence from Environmental Concern Triggers (with Melanie I. Millar, Mason C. Snow, and Roger M. White) Accounting, Organizations, and Society, Accepted
- Fixed Income Conference Calls (with Gus De Franco, Da Xu, and Zhiwei (Vivi) Zhu) Journal of Accounting and Economics (2023) Vol. 75, No. 1, 101518 [SSRN]
- Does Native Country Turmoil Predict Immigrant Workers’ Honesty in Markets? (with Roger M. White) Journal of Economic Behavior & Organization (2022) Vol. 197, pp. 150-164 [SSRN]
- Do Sell-Side Analysts Play a Role in Hedge Fund Activism? Evidence from Textual Analysis (with Huimin (Amy) Chen) Contemporary Accounting Research (2022) Vol. 39, No.3, pp. 1583-1614 [SSRN]
- Do Sin Taxes Spur Cheating in Interpersonal Exchange? (with David Kenchington, Jared D. Smith, and Roger M. White) Accounting, Organizations, and Society (2022) Vol. 96, 101281 [SSRN]
- Unbridled Spirit: Illicit Markets for Bourbon Whiskey (with Conor J. Lennon) Journal of Economic Behavior & Organization (2021) Vol. 191, pp. 1025-1045 [SSRN]
- Which Buy-Side Institutions Participate in Public Earnings Conference Calls? Implications for Capital Markets and Sell-Side Coverage (with Andrew C. Call and Nathan Y. Sharp) Journal of Corporate Finance (2021) Vol. 68, 101964 [SSRN] [Internet Appendix: Participant Classifications] [Internet Appendix: Participant Data]
- Investor Awareness or Information Asymmetry? Wikipedia and IPO Underpricing (with Thomas J. Boulton, Bill Francis, and Daqi Xin) Financial Review (2021) Vol. 56, No. 3, pp. 535-561 [SSRN] [Internet Appendix]
- Bank Loan Renegotiation and Credit Default Swaps (with Brian Clark, James Donato, and Bill Francis) Journal of Banking & Finance (2020) Vol. 151, 105936 [SSRN]
- The Dark Side of Individual Blockholder Philanthropy (with Roger M. White) Financial Management (2020) Vol. 49, No. 3, pp. 741-767 [SSRN]
- Bulk Volume Classification and Information Detection (with Marios A. Panayides and Jared D. Smith) Journal of Banking & Finance (2019) Vol. 103, pp. 113-129 [SSRN] [Internet Appendix]
- Angels or Sharks? The Role of Personal Characteristics in Angel Investment Decisions (with Thomas J. Boulton and Pengcheng Zhu) Journal of Small Business Management (2019) Vol. 57, No. 4, pp. 1280-1303 [SSRN]