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The power of voice: Managerial affective states and future firm performance

Publication ,  Journal Article
Mayew, WJ; Venkatachalam, M
Published in: Journal of Finance
January 1, 2012

We measure managerial affective states during earnings conference calls by analyzing conference call audio files using vocal emotion analysis software. We hypothesize and find that, when managers are scrutinized by analysts during conference calls, positive and negative affects displayed by managers are informative about the firm's financial future. Analysts do not incorporate this information when forecasting near-term earnings. When making stock recommendation changes, however, analysts incorporate positive but not negative affect. This study presents new evidence that managerial vocal cues contain useful information about a firm's fundamentals, incremental to both quantitative earnings information and qualitative "soft" information conveyed by linguistic content. © 2012 the American Finance Association.

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Published In

Journal of Finance

DOI

EISSN

1540-6261

ISSN

0022-1082

Publication Date

January 1, 2012

Volume

67

Issue

1

Start / End Page

1 / 43

Related Subject Headings

  • Finance
  • 3801 Applied economics
  • 3502 Banking, finance and investment
  • 1502 Banking, Finance and Investment
 

Citation

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Mayew, W. J., & Venkatachalam, M. (2012). The power of voice: Managerial affective states and future firm performance. Journal of Finance, 67(1), 1–43. https://doi.org/10.1111/j.1540-6261.2011.01705.x
Mayew, W. J., and M. Venkatachalam. “The power of voice: Managerial affective states and future firm performance.” Journal of Finance 67, no. 1 (January 1, 2012): 1–43. https://doi.org/10.1111/j.1540-6261.2011.01705.x.
Mayew WJ, Venkatachalam M. The power of voice: Managerial affective states and future firm performance. Journal of Finance. 2012 Jan 1;67(1):1–43.
Mayew, W. J., and M. Venkatachalam. “The power of voice: Managerial affective states and future firm performance.” Journal of Finance, vol. 67, no. 1, Jan. 2012, pp. 1–43. Scopus, doi:10.1111/j.1540-6261.2011.01705.x.
Mayew WJ, Venkatachalam M. The power of voice: Managerial affective states and future firm performance. Journal of Finance. 2012 Jan 1;67(1):1–43.
Journal cover image

Published In

Journal of Finance

DOI

EISSN

1540-6261

ISSN

0022-1082

Publication Date

January 1, 2012

Volume

67

Issue

1

Start / End Page

1 / 43

Related Subject Headings

  • Finance
  • 3801 Applied economics
  • 3502 Banking, finance and investment
  • 1502 Banking, Finance and Investment