Task-oriented speech and information processing
We examine the impact of task-oriented speech (TOS) on market participants’ ability to process new information, where TOS quantifies a more direct method of communication. Focusing on a widely publicized information event, conference calls, we show that greater TOS is associated with lower ex-post t...
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Veröffentlicht in: | Journal of banking & finance 2024-04, Vol.161, p.1-22, Article 107095 |
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Format: | Artikel |
Sprache: | eng |
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Zusammenfassung: | We examine the impact of task-oriented speech (TOS) on market participants’ ability to process new information, where TOS quantifies a more direct method of communication. Focusing on a widely publicized information event, conference calls, we show that greater TOS is associated with lower ex-post total and idiosyncratic volatility and abnormal trading volume, even after controlling for linguistic characteristics, hard versus soft information, industry effects, and ex-ante implied volatility. TOS also impacts financial analysts: forecast error, forecast dispersion and disagreement are lower during the subsequent quarter. Overall, greater use of TOS increases the ability of financial markets to efficiently evaluate new information. |
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ISSN: | 0378-4266 1872-6372 |
DOI: | 10.1016/j.jbankfin.2024.107095 |