Brown Bag Seminar with Alexander F. Wagner, University of Zurich
FRIC Center for Financial Frictions and the Department of Finance areÌýpleased to announceÌýthe upcoming Brown Bag Seminar withÌýAlexander F. Wagner, University of Zurich.
Alexander F. WagnerÌýwill present:Ìý
In no (un)certain terms: Managerial style in communicating earnings newsÌý
The paper is joint work with Michal Dzielinski and Richard Zeckhauser
ABSTRACT
This paper studies managers' use of words we label asÌývague, such as "conceivably", "probably", or "conditional", when they conduct earnings conference calls. Vague words provide the managers protection if outcomes are different than suggested.Ìý Some CEOs and CFOs are consistentlyÌývague talkers, others are consistentlyÌýstraight talkers. The stock market attends to the style of managerial talk, and responds more slowly to earnings news when the manager is vague.Ìý
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