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

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

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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

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