Earnings call transcripts are published by public companies for investors. The companies that publish the transcripts announce the date and time of their upcoming calls several weeks before the actual call, which attracts the attention of interested parties. Business reporters, equity analysts, and investors are common participants. In addition, large companies often receive extensive coverage in the business press. It can be difficult to keep up with every detail of a company’s earnings release, but there are ways to find the transcripts without leaving your office.
The language used during earnings calls can be informative. Academic studies have shown that auditory details can tell us a lot about a company’s management and how it reacts to the results of a firm. Many CEOs with financial backgrounds deferred to the CFO. Moreover, their tone and pauses were predictive of their emotional states as well as the reaction of the market to their results. This type of information can be useful in many aspects of the business world, including predicting market reactions.
Earnings call transcripts can be a valuable source of information for the investors. By analyzing these audio recordings, researchers were able to draw detailed observations on the executives. The researchers were surprised to learn that the CEOs who do not hold the Chartered Financial Analyst designation often deferred to their CFOs. This was a clear indication that they did not understand the fundamentals of financial matters. The language management used can also reveal a company’s sentiment toward its results and expectations for the reaction of the market.
By mining earnings call transcripts, researchers were able to extract important information from the data that executives gave on the call. For example, those with the Chartered Financial Analyst designation often deferred to the CFO, which reflected their lack of comfort with financial matters. Furthermore, language management could reveal how a CEO feels about the results, how he expects the market to react to them, and more. This information can be vital for investors to understand the company’s performance.
Earnings call transcripts are a useful source of information that can be used by analysts to predict the performance of a company. While an analyst’s job is to analyze the results of the earnings call, he can also use the transcripts to help investors understand the company’s outlook. An analysis of earnings call transcripts can help managers anticipate the future of a company’s stock. The content of the earnings call is essential for financial analysts.
Earnings call transcripts are also helpful for analysts, who want to understand the company’s performance in a timely manner. This information is crucial for making informed decisions and developing strategies for the company. With this information, IR professionals can prepare executives for their earnings calls and craft meaningful shareholder communications. If they are not comfortable with the language used in the transcripts, they can simply ignore them. The resulting insights can help them prepare for the earnings call and prepare for the questions and comments that they will hear.
The language used during earnings calls is valuable in many ways. Even boring transcripts can provide valuable insights into an executive’s character and the inner workings of a company. The researchers parse tens of thousands of earnings call transcripts and cross-reference the data with firm financials and biographical data. Additionally, they can uncover a CEO’s personality traits from these data. There are also various benefits of investing in earnings call transcripts. The research is based on linguistics, psychology, and other aspects of speech.
In addition to earnings call transcripts, IR can also use them to make strategic decisions. Intelligize’s ECT allows analysts to easily navigate through the transcripts and eliminates the need to manually leaf through the documents. The ECT is a database of tagged transcripts, so it cuts down on the time spent leafing through them. The software also allows them to access the corresponding documents on the company’s website.
In addition to using earnings call transcripts for research, analysts also use them to gauge the executive’s temperament. By comparing the tone of the call, researchers were able to identify the CEO’s attitude toward the results. They noted that he often deferred to the CFO and lacked knowledge of finance. They were able to discern which executives were unsure of how to answer questions, and whether they should talk to the media.
