Abstract
We analyze the information content of the executives’ voice in conference call . We find that (1) the executives’ vocal cues contain information about the firm’s future performance; (3) Investors quickly react to the executives’ vocal cues; (2) analysts incorporate the executives’ vocal cues when making earnings forecast ; (4) whether the firm hit analyst earnings forecasts will influence the information content about the firm’s fundamentals in the executive’s voice, and influence market reaction towards the voice. Together these findings suggest that the executives’ vocal cues contain incremental information about the firm’s fundamentals and triggers incremental investors’ reaction beyond other public information signals.