Causes and consequences of linguistic complexity in non-U.S. firm conference calls

Causes and consequences of linguistic complexity in non-U.S. firm conference calls

DSpace/Manakin Repository

Causes and consequences of linguistic complexity in non-U.S. firm conference calls

dc.contributor.author	Brochet, Francois
dc.contributor.author	Naranjo, Patricia
dc.contributor.author	Yu, Gwen
dc.date.accessioned	2012-10-10T13:46:39Z
dc.date.issued	2012-10-10
dc.identifier.citation	Brochet, Francois, Patricia Naranjo, and Gwen Yu. "Causes and consequences of linguistic complexity in non-U.S. firm conference calls." Harvard Business School Working Paper, No. 13–033, October 2012	en_US
dc.identifier.uri	http://nrs.harvard.edu/urn-3:HUL.InstRepos:9709899
dc.description.abstract	We examine the determinants and capital market consequences of linguistic complexity in conference calls held in English by non-U.S. firms. We find that linguistic complexity is positively associated with the language barrier in the firms’ home country. Also, linguistic complexity in firms’ conference calls affects the extent to which the capital market reacts to the information releases. Firms with more linguistic complexity in their conference calls show less trading volume and price movement following the information releases, after controlling for the actual earnings news. Further, the capital market’s response to linguistic complexity is more pronounced when there is greater implicit (as captured by the presence of foreign investors) or explicit (as captured by how actively analysts ask questions) demand for the English conference calls. This suggests that the form in which financial information is presented can impose additional processing costs by limiting investors’ ability to interpret the reported financials.	en_US
dc.language.iso	en_US	en_US
dash.license	OAP
dc.title	Causes and consequences of linguistic complexity in non-U.S. firm conference calls	en_US
dc.type	Research Paper or Report	en_US
dc.description.version	Author's Original	en_US
dc.relation.journal	Harvard Business School working paper series # 13-033	en_US
dash.depositing.author	Yu, Gwen
dc.date.available	2012-10-10T13:46:39Z