The Influence of CEO Letters’ Tone on Financial Indicators of the Company

Fedorova, Elena; Demin, Igor; Хрустова, Любовь Евгеньевна; Fedorov, F I; Осетров, Роман Александрович

doi:10.21638/11701/spbu18.2017.403

Cited by 4 publications

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“…In the framework of the study, the NetSent and PosSent variables will be used as the "semantic" (tonality) variables, and the formula description of them will be given below. Previously, this hypothesis was confirmed in earlier studies, which were devoted to the text tone of CEO and Board of Directors Letters as well as press releases according to the sample of USA companies of S&P500, German and Russian public firms (Martinez-Blasco et al, 2015;Bannier et al, 2017;Patelli and Pedrini, 2014;Fyodorova et al, 2017). As part of the conference call research, hypothesis 1 was tested and confirmed in samples of public companies of USA and of Hong Kong Stock Exchange in 2005-2015 Brockman et al, 2017).…”

Section: Literature Review and Research Hypothesesmentioning

confidence: 59%

“…This can undermine the dynamics of stocks in the short or medium term. Previously, this hypothesis was verified in Brockman et al (2017) and Doran et al (2012) devoted to the analysis and influence of the tonality of conference calls, and is also confirmed in samples of CEO Letters (Courtis, 2004;Li, 2008) for USA and Chinese companies, but was rejected in Fyodorova et al (2017) in the sample of CEO Letters of 50 public Russian companies for 2010-2016.…”

Section: Literature Review and Research Hypothesesmentioning

confidence: 85%

“…Additionally, the control variables are included in regression models that are estimated below. It is necessary, firstly, to fix the effect of non-financial information on the company's future market performance and its tonality level, and secondly, these factors have been successfully tested and applied in recent empirical studies in this field (Davis et al, 2006(Davis et al, , 2012Demers and Vega, 2008;Price et al, 2012;Boudt and Thewissen, 2019;Fyodorova et al, 2017, where these variables improved the general explanatory power and significance of the regression model.…”

Section: Methodsmentioning

confidence: 99%

“…Udaltsov and Tikhonova (2013) built the information transparency index for companies according to a sample of 34 Russian public companies, which turned out to be related significantly and unidirectionally to firms' investment strategy and the attractiveness of the company for investors. Russian economists (Fyodorova et al, 2017 have conducted the first attempt to evaluate the role and significance of non-financial reporting in the sample of CEO and BoD Letters. The authors have failed to identify a significant relationship between narcissism, the emotional tone of official letters and the future financial results of the company.…”

Section: Introductionmentioning

confidence: 99%

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The influence of conference calls’ semantic characteristics on the company market performance: Text analysis

Fyodorova¹,

Sayakhov²,

Demin³

et al. 2019

RUJEC

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The purpose of the study is to find out the influence of semantic (emotional coloring, length and complexity of the text) and thematic features (environmental, corporate-social and legal context) of conference calls with market analysts and investors on future company performance (CAR) and analysts’ recommendation for the share. The empirical framework of the research includes annual conference calls of public companies on the Moscow (MOEX) and London Stock Exchanges (LSE) from 2015 to 2019. The research methodology is based on the semantic analysis of the call text by using the linguistic dictionaries NRC 2010 and Corporate Social Responsibility 2016. The results of the study illustrate the significant impact of textual features of the conference call (the general tone of the call, the tone of management and the negative tone of analysts, the length and complexity of the text) on the abnormal stock returns (for 3, 14, 30 days). This relation is consistent for companies of both stock exchanges, but diverges in terms of the influence of the thematic characteristics of the call that can be explained by the mandatory disclosure of this information by European public companies (ESG Reports), as opposed to voluntary publication by Russian companies. The results can be applied both by the management of public companies in order to improve companies’ attractiveness (perception and transparency) and its market value in the short and medium-term period, and by investors to manage effectively the portfolio by predicting the future dynamics of the company’s share price after a conference call based on semantic tone and thematic features.

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Section: Literature Review and Research Hypothesesmentioning

confidence: 59%

Section: Literature Review and Research Hypothesesmentioning

confidence: 85%

Section: Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The influence of conference calls’ semantic characteristics on the company market performance: Text analysis

Fyodorova¹,

Sayakhov²,

Demin³

et al. 2019

RUJEC

View full text Add to dashboard Cite

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“…Он довольно часто используется в исследованиях, посвященных текстовому анализу, так как отражает степень сложности текста с точки зрения понимания читателем информации. Увеличение длины текста влияет на понимание читателем смысла -на прочтение и понимание длинного текста необходимо затратить больше усилий, что при прочих равных повышает сложность его восприятия [20].…”

Section: текстовый анализunclassified

The Influence of the Tonality of News on the Exchange Rate of Bitcoin

Fedorova

Bechvaya

Rogov

2018

jour

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К. З. Бечвая, Финансовый университет,Москва, Россия https://orcid.org/0000-0001-5857-9068 О. Ю. Рогов, Государственный научно-исследовательский институт авиационных систем, Москва, Россия https://orcid.org/0000-0001-9672-2427 АННОТАЦИЯ Оценивается влияние эмоциональной тональности новостей о биткоине на его курс. В частности, исследуется, влияет ли индекс читабельности текста новостей на волатильность биткоина. Несмотря на то что чрезмерная волатильность угрожает биткоину не стать успешной валютой, многие ученые заинтересованы в детерминантах такой волатильности. Такие факторы, как спекулятивные инвестиции или внимание общества, являются драйверами изменчивости курса биткоина. В связи с этим вопрос исследования влияния новостей на курс биткоина является актуальным. Цель данной работы состоит в том, чтобы оценить влияние эмоциональной тональности новостей о биткойне на его курс. Эмпирическая база исследования довольно объемная, поскольку включает в себя более 1330 новостей из информационной базы Thomson Reuters за период с 19.08.2011 по 16.08.2016 г. по рынку биткоина. Методология исследования включает анализ тональности, проведенный с использованием словаря МакДональда и Лоугрэна, также проведен анализ взаимозависимости временных рядов на основе каузального анализа с применением теста Грэнджера на причинность. В статье поставлены три гипотезы о влиянии новостей на курс биткоина. В ходе исследования получили подтверждение две из них. Доказана первая гипотеза о более значительном влиянии негативных новостей, чем позитивных с учетом пяти лагов. Вторая гипотеза о влиянии положительной тональности в новостях на курс в результате применения теста Грэнджера на причинность не подтвердилась, поскольку положительные значения данного теста были получены в двух лагах из пяти. Также была доказана третья гипотеза о том, что высокий индекс читабельности оказывает влияние на волатильность биткоина за весь изученный период с учетом всех пяти лагов. Таким образом, предположение о влиянии эмоционального освещения новостей на курс биткоина подтвердилось. Ключевые слова: биткоин; криптовалюта; текстовый анализ; новости; анализ тональности новостей; цифровая валюта; влияние новостей; волатильность биткоина Для цитирования: Федорова Е. А., Бечвая К. З., Рогов О. Ю. Влияние тональности новостей на курс биткоина. Финансы: теория и практика. abStRaCtThe authors assess the impact of the emotional tonality of bitcoin news on its exchange rate. In particular, we studied the hypothesis of the impact of the readability index of the news text on the volatility of bitcoin. Despite the fact that excessive volatility threatens bitcoin not to become a successful currency, many scientists are interested in the determinants of such volatility. Factors such as speculative investments or the attention of the society are the drivers of the volatility of the exchange rate of bitcoin. In this regard, the question of studying the impact of news on the bitcoin exchange rate is relevant. The purpose of this paper is to assess the impact of the emotional tona...

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The Impact of Disclosure Sentiment on the Share Prices of Russian Companies

Kopyrin¹,

Naidenova²

2021

КФ

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Information about companies published in a news feed is invariably tinted by emotional tonality. As such, resultingperceptions may influence the opinion of market players, and consequently affect the dynamics of a company’s shareprice. This study aims to evaluate various hypotheses about the impact of the tone of news items regarding dividends,capital expenditures, and development on the stock prices of Russian companies. Information disclosure is extensivelystudied, and there have been limited studies on the effect of disclosures on Russian companies. However, until now, therehave been no research studies which verify hypotheses on the influence of news sentiment on corporate share prices inthe Russian market. This analysis was conducted using data from 49 Russian public companies included in the Moscow exchange indexover the period from the end of 2017 to the beginning of 2019. To account for the proximate impact of news items onconsequential market phenomena, an event study methodology was applied in order to estimate and construct themodels of dependency of cumulative abnormal return (CAR) on news tone level, and control for financial and nonfinancialfactors. Our results provide evidence for the positive impact of the tone of news texts on the share prices of Russian companies.The increase in news tone by one standard deviation leads to a cumulative abnormal stock return increase of 0.26percentage points. This result is consistent with previous research conducted on data from developed stock markets.Moreover, the relationship between the tone or sentiment level of a news item and the stock price reaction is linear,without the diminishing marginal effect. Our conclusions should prompt companies to invest effort in delivering information in a tonally positive way,highlighting the most positive news. Investors, in turn, should rationally approach the interpretation of publishedinformation.

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The Influence of CEO Letters’ Tone on Financial Indicators of the Company

Cited by 4 publications

References 15 publications

The influence of conference calls’ semantic characteristics on the company market performance: Text analysis

The influence of conference calls’ semantic characteristics on the company market performance: Text analysis

The Influence of the Tonality of News on the Exchange Rate of Bitcoin

The Impact of Disclosure Sentiment on the Share Prices of Russian Companies

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