Home > Research > Publications & Outputs > The effect of conference calls on analysts' for...

Electronic data

  • The Effect of Conference Calls on Analysts' Forecasts - German Evidence

    Rights statement: This is an Author's Original Manuscript of an article submitted for consideration in the European Accounting Review [copyright Taylor & Francis]; European Accounting Review is available online athttp://www.tandfonline.com/doi/abs/10.1080/09638180.2011.640454"

    Submitted manuscript, 413 KB, PDF document

Links

Text available via DOI:

View graph of relations

The effect of conference calls on analysts' forecasts: German evidence

Research output: Contribution to journalJournal article

Published
Close
<mark>Journal publication date</mark>2013
<mark>Journal</mark>European Accounting Review
Issue number1
Volume22
Number of pages33
Pages (from-to)151-183
Publication StatusPublished
<mark>Original language</mark>English

Abstract

This study examines whether conference calls provide additional information to analysts. For a large sample of conference calls, hosted by German firms between 2004 and 2007, our results show that conference calls improve analysts’ ability to forecast future earnings accurately. This suggests that additional information is released during conference calls. The reduction in forecast error is economically significant and larger in magnitude when compared to results for the US (Bowen et al., 2002). These findings are consistent with the notion that commiting to additional disclosures is likely to yield greater effects in a less stringent disclosure system (Verrecchia, 2001). Since the majority of our sample firms conduct conference calls as closed calls, the evidence of this paper suggests that conference calls may contribute to an information gap between call participants and non-invited parties. Our findings should be of substantial interest to European regulators seeking to level the informational playing field for all investors.

Bibliographic note

This is an Author's Original Manuscript of an article submitted for consideration in the European Accounting Review [copyright Taylor & Francis]; European Accounting Review is available online athttp://www.tandfonline.com/doi/abs/10.1080/09638180.2011.640454"