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Using earnings conference calls to identify analysts with superior private information

Publication ,  Journal Article
Mayew, WJ; Sharp, NY; Venkatachalam, M
Published in: Review of Accounting Studies
June 1, 2013

We examine the extent to which analysts who participate in earnings conference calls by asking questions possess superior private information relative to analysts who do not ask questions. Using a large sample of earnings conference call transcripts over the period 2002-2005, we find that annual earnings forecasts issued immediately after a conference call are both more accurate and timelier for participating analysts relative to nonparticipating analysts. These results hold after controlling for observable analyst characteristics, suggesting conference call participation can serve as a mechanism to identify analysts possessing superior private information. The economic magnitude of the superior private information contained in participating analyst forecasts is small but comparable with magnitudes reported in prior studies with respect to other analyst characteristics. Our mediation analysis does not support the notion that the superior private information stems exclusively from the information received during the call. Therefore, from a regulatory stand point, our results suggest that regulatory intervention to allow for equal participation during conference calls may be unwarranted. © 2012 Springer Science+Business Media, LLC.

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Published In

Review of Accounting Studies

DOI

ISSN

1380-6653

Publication Date

June 1, 2013

Volume

18

Issue

2

Start / End Page

386 / 413

Related Subject Headings

  • Accounting
  • 3501 Accounting, auditing and accountability
  • 1501 Accounting, Auditing and Accountability
 

Citation

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Mayew, W. J., Sharp, N. Y., & Venkatachalam, M. (2013). Using earnings conference calls to identify analysts with superior private information. Review of Accounting Studies, 18(2), 386–413. https://doi.org/10.1007/s11142-012-9210-y
Mayew, W. J., N. Y. Sharp, and M. Venkatachalam. “Using earnings conference calls to identify analysts with superior private information.” Review of Accounting Studies 18, no. 2 (June 1, 2013): 386–413. https://doi.org/10.1007/s11142-012-9210-y.
Mayew WJ, Sharp NY, Venkatachalam M. Using earnings conference calls to identify analysts with superior private information. Review of Accounting Studies. 2013 Jun 1;18(2):386–413.
Mayew, W. J., et al. “Using earnings conference calls to identify analysts with superior private information.” Review of Accounting Studies, vol. 18, no. 2, June 2013, pp. 386–413. Scopus, doi:10.1007/s11142-012-9210-y.
Mayew WJ, Sharp NY, Venkatachalam M. Using earnings conference calls to identify analysts with superior private information. Review of Accounting Studies. 2013 Jun 1;18(2):386–413.
Journal cover image

Published In

Review of Accounting Studies

DOI

ISSN

1380-6653

Publication Date

June 1, 2013

Volume

18

Issue

2

Start / End Page

386 / 413

Related Subject Headings

  • Accounting
  • 3501 Accounting, auditing and accountability
  • 1501 Accounting, Auditing and Accountability