학회소식
[2021년 제 6차] Executives' Blaming External Factors and Market Reactions: Evidence from Earnings Conference Calls
작성자 : 관리자
조회수 : 62
게시일 :
2021-12-07
We investigate how market participants react to corporate executives' strategically blaming the economy or industries for poor firm performance. In the quarters subsequent to earnings conference calls, we find that the blame sentences', which capture executives' blaming tactics, predict negative and non-reverting abnormal returns, negative earnings surprises, and analyst recommendation downgrades. These blaming tactics also reduce the sensitivity of executives' turnover to their past performance. Our findings imply that executives strategically inject into the blame sentences the negative value-relevant information which market participants can digest by combining distinct categories of information (e.g., firm-specific vs economy-wide), leading to delayed market reactions to the blame sentences.
