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