Modeling Financial Analysts' Decision Making via the Pragmatics and Semantics of Earnings Calls
Every fiscal quarter, companies hold earnings calls in which company executives respond to questions from analysts. After these calls, analysts often change their price target recommendations, which are used in equity re- search reports to help investors make deci- sions. In this paper, we examine analysts{'} decision making behavior as it pertains to the language content of earnings calls. We identify a set of 20 pragmatic features of analysts{'} questions which we correlate with analysts{'} pre-call investor recommendations. We also analyze the degree to which semantic and pragmatic features from an earnings call complement market data in predicting analysts{'} post-call changes in price targets. Our results show that earnings calls are moderately predictive of analysts{'} decisions even though these decisions are influenced by a number of other factors including private communication with company executives and market conditions. A breakdown of model errors indicates disparate performance on calls from different market sectors.
Code (0)
등록된 구현이 없습니다.
Tasks
Decision MakingSimilar Papers 제목 키워드 기반
Modeling financial analysts' decision making via the pragmatics and semantics of earnings calls
Every fiscal quarter, companies hold earnings calls in which company executives respond to questions from analysts. After these calls, analysts often change their price target recommendations, which are used in equity re…
Decision MakingDistilling Analysis from Generative Models for Investment Decisions
Professionals' decisions are the focus of every field. For example, politicians' decisions will influence the future of the country, and stock analysts' decisions will impact the market. Recognizing the influential role …
Decision MakingFinancial Statement Analysis with Large Language Models
We investigate whether large language models (LLMs) can successfully perform financial statement analysis in a way similar to a professional human analyst. We provide standardized and anonymous financial statements to GP…
Decision MakingGenerative AI for Analysts
We study how generative artificial intelligence (GenAI) reshapes financial analysts' information production. Using the 2023 integration of GenAI into FACTSET as a plausibly exogenous change in AI access, we find that FAC…
The Role of Pragmatics in Legal Norm Representation
Despite the 'apparent clarity' of a given legal provision, its application may result in an outcome that does not exactly conform to the semantic level of a statute. The vagueness within a legal text is induced intention…
Decision Making