Do the words matter? An analysis of the linguistic sentiment of earnings conference calls and abnormal stock returns in brazilian companies
Autor(a) principal: | |
---|---|
Data de Publicação: | 2019 |
Outros Autores: | , , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10071/19916 |
Resumo: | In finance and accounting literature, different aspects are presented as possible factors related to stock returns. More recently, studies have been dedicated to analyzing the potential influence of the tone and sentiment of corporate reports, newspaper articles, press releases, and investor message boards on stock prices. Thus, based on assumptions of Legitimacy Theory, we investigate whether cumulative abnormal returns (CAR) on the stocks of Brazilian listed companies are associated with the linguistic sentiment of quarterly earnings conference calls. Using a sample of 78 observations related to the conference calls of 24 companies listed in the Novo Mercado segment in 2016-2017, we measured CAR using the market model and the linguistic sentiment of earnings conference calls using IBM’s Watson Natural Language Understanding platform. An analysis of the results of statistical tests such as descriptive results, correlation matrix, and correspondence analysis enables it to be inferred that, in general, there is a positive association between cumulative abnormal returns and the optimism sentiment of quarterly conference calls. Thus, it is conjectured the possibility that the speeches made by managers in conference calls legitimize company performance in the market, by altering the perception of investors in the stock market and leading to implications for the value of the stocks traded. |
id |
RCAP_eed1bbe674c19550544badbc22f193c0 |
---|---|
oai_identifier_str |
oai:repositorio.iscte-iul.pt:10071/19916 |
network_acronym_str |
RCAP |
network_name_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository_id_str |
7160 |
spelling |
Do the words matter? An analysis of the linguistic sentiment of earnings conference calls and abnormal stock returns in brazilian companiesLinguistic sentimentConference callsAbnormal returnsLegitimacy theoryIn finance and accounting literature, different aspects are presented as possible factors related to stock returns. More recently, studies have been dedicated to analyzing the potential influence of the tone and sentiment of corporate reports, newspaper articles, press releases, and investor message boards on stock prices. Thus, based on assumptions of Legitimacy Theory, we investigate whether cumulative abnormal returns (CAR) on the stocks of Brazilian listed companies are associated with the linguistic sentiment of quarterly earnings conference calls. Using a sample of 78 observations related to the conference calls of 24 companies listed in the Novo Mercado segment in 2016-2017, we measured CAR using the market model and the linguistic sentiment of earnings conference calls using IBM’s Watson Natural Language Understanding platform. An analysis of the results of statistical tests such as descriptive results, correlation matrix, and correspondence analysis enables it to be inferred that, in general, there is a positive association between cumulative abnormal returns and the optimism sentiment of quarterly conference calls. Thus, it is conjectured the possibility that the speeches made by managers in conference calls legitimize company performance in the market, by altering the perception of investors in the stock market and leading to implications for the value of the stocks traded.Associação Nacional dos Programas de Pós-Graduação em Ciências Contábeis2020-02-17T12:26:03Z2019-01-01T00:00:00Z20192020-02-17T12:25:41Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10071/19916eng1983-861110.14392/asaa.2019120308Viana Junior, D. B. C.Castro, L. A.Ponte, V. M. R.Lima, M. C.info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-11-09T17:49:36Zoai:repositorio.iscte-iul.pt:10071/19916Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T22:24:22.129069Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Do the words matter? An analysis of the linguistic sentiment of earnings conference calls and abnormal stock returns in brazilian companies |
title |
Do the words matter? An analysis of the linguistic sentiment of earnings conference calls and abnormal stock returns in brazilian companies |
spellingShingle |
Do the words matter? An analysis of the linguistic sentiment of earnings conference calls and abnormal stock returns in brazilian companies Viana Junior, D. B. C. Linguistic sentiment Conference calls Abnormal returns Legitimacy theory |
title_short |
Do the words matter? An analysis of the linguistic sentiment of earnings conference calls and abnormal stock returns in brazilian companies |
title_full |
Do the words matter? An analysis of the linguistic sentiment of earnings conference calls and abnormal stock returns in brazilian companies |
title_fullStr |
Do the words matter? An analysis of the linguistic sentiment of earnings conference calls and abnormal stock returns in brazilian companies |
title_full_unstemmed |
Do the words matter? An analysis of the linguistic sentiment of earnings conference calls and abnormal stock returns in brazilian companies |
title_sort |
Do the words matter? An analysis of the linguistic sentiment of earnings conference calls and abnormal stock returns in brazilian companies |
author |
Viana Junior, D. B. C. |
author_facet |
Viana Junior, D. B. C. Castro, L. A. Ponte, V. M. R. Lima, M. C. |
author_role |
author |
author2 |
Castro, L. A. Ponte, V. M. R. Lima, M. C. |
author2_role |
author author author |
dc.contributor.author.fl_str_mv |
Viana Junior, D. B. C. Castro, L. A. Ponte, V. M. R. Lima, M. C. |
dc.subject.por.fl_str_mv |
Linguistic sentiment Conference calls Abnormal returns Legitimacy theory |
topic |
Linguistic sentiment Conference calls Abnormal returns Legitimacy theory |
description |
In finance and accounting literature, different aspects are presented as possible factors related to stock returns. More recently, studies have been dedicated to analyzing the potential influence of the tone and sentiment of corporate reports, newspaper articles, press releases, and investor message boards on stock prices. Thus, based on assumptions of Legitimacy Theory, we investigate whether cumulative abnormal returns (CAR) on the stocks of Brazilian listed companies are associated with the linguistic sentiment of quarterly earnings conference calls. Using a sample of 78 observations related to the conference calls of 24 companies listed in the Novo Mercado segment in 2016-2017, we measured CAR using the market model and the linguistic sentiment of earnings conference calls using IBM’s Watson Natural Language Understanding platform. An analysis of the results of statistical tests such as descriptive results, correlation matrix, and correspondence analysis enables it to be inferred that, in general, there is a positive association between cumulative abnormal returns and the optimism sentiment of quarterly conference calls. Thus, it is conjectured the possibility that the speeches made by managers in conference calls legitimize company performance in the market, by altering the perception of investors in the stock market and leading to implications for the value of the stocks traded. |
publishDate |
2019 |
dc.date.none.fl_str_mv |
2019-01-01T00:00:00Z 2019 2020-02-17T12:26:03Z 2020-02-17T12:25:41Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10071/19916 |
url |
http://hdl.handle.net/10071/19916 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
1983-8611 10.14392/asaa.2019120308 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Associação Nacional dos Programas de Pós-Graduação em Ciências Contábeis |
publisher.none.fl_str_mv |
Associação Nacional dos Programas de Pós-Graduação em Ciências Contábeis |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
repository.mail.fl_str_mv |
|
_version_ |
1799134806007611392 |