Signalling through managerial tone and analysts’ response

Figures & data

Figure 1. Signalling framework.

Table 1. Data collection.

Sample selection
Earnings call transcripts by FTSE350 extracted from Thomson Reuters from 2002 to 2020	6165
Same transcript content with a different title	−427
Call transcripts without discussion portions	−339
Call transcripts for tone measurement	5399
Call transcripts with missing financial data and control variables from DataStream	−1719
Sample available to all models	3680

Note: This table presents the information about our sample selection process.

Table 2. Descriptive statistics.

	N	Mean	Std. Dev.	min	Median	max
Tone variable
Tone	4961	0.274	0.203	−0.556	0.292	0.762
Tone_pres	4960	0.390	0.217	−1	0.415	1
Tone_Mdis	4961	0.058	0.247	−1	0.070	0.840
Tone_A	4957	−0.251	0.276	−1	−0.259	1
Tone_R	4961	0.013	0.011	−0.034	0.014	0.049
Tone_pres_R	4961	0.021	0.013	−0.028	0.020	0.071
Tone_Mdis_R	4961	0.003	0.011	−0.082	0.003	0.047
Tone_A_R	4961	−0.010	0.013	−0.225	−0.010	0.037
Ab_Tone	15,392	0.005	0.130	−0.366	0.000	0.378
Analyst variable
AFREV_Amount	3947	−0.012	0.691	−2.790	0.001	2.649
AFREV_Prop	3947	−0.001	0.066	−0.0226	0	0.229
Error	17,129	0.080	0.065	0.000	0.069	0.390
Pre_accuracy	18,264	−0.638	2.446	−34.118	−0.106	−0.001
Experience	16,697	3.261	0.801	1.386	3.466	4.564
Brokersize	17,829	8.388	1.157	1.609	8.617	10.206
All-star	19,254	0.287	0.452	0.000	0.000	1.000
Attend	19,254	0.236	0.425	0.000	0.000	1.000
Financial variable
EBIT	4516	0.041	0.059	−0.616	0.036	1.116
EBITnxtQ	4094	0.040	0.054	−0.543	0.036	1.108
EBITnxtY	4456	0.039	0.044	−0.194	0.034	1.108
Epretax	4879	0.034	0.058	−0.623	0.028	1.113
EpretaxnxtQ	4415	0.033	0.054	−0.556	0.028	1.105
EpretaxnxtY	4692	0.032	0.043	−0.203	0.026	1.105
ROAnxtQ	4174	7.517	9.245	−56.86	6.555	106.77
ROAnxtY	4618	7.31	7.887	−30.37	6.243	221.72
MBE	2101	0.254	0.435	0	0	1
SURP	1821	−0.016	0.045	−1.113	−0.005	0.083
Return	4742	−0.880	0.374	−1.981	−0.901	4.698
Control variable
EBITloss	4561	0.101	0.301	0	0	1
Epretaxloss	4879	0.125	0.331	0	0	1
EBITupdown	4561	0.429	0.495	0	0	1
Epretaxupdown	4879	0.435	0.496	0	0	1
ACC	4152	−0.017	0.064	−0.825	−0.009	1.109
size	4761	15.375	1.515	10.491	15.171	20.327
BTM	4738	0.714	0.281	0.016	0.727	1.779
busiseg	4915	1.596	0.447	0.693	1.609	2.398
geoseg	4926	1.607	0.555	0.693	1.609	2.398
firmage	4932	22.623	7.115	1	28	28
Returnvol	4738	0.295	0.138	0.001	0.268	2.898
EBITvol	4861	0.053	0.026	0.001	0.048	0.443
Epretaxvol	4865	0.053	0.026	0	0.05	0.452
AF	4761	2.723	0.485	0.693	2.833	3.784

Notes: This table presents the information about the descriptive statistics of variables used in the regression analyses. All variables are defined in Appendix.

Table 3. Regression results for H1.

	(1)	(2)	(3)	(4)	(5)	(6)
Variables	Tone	Tone_pres	Tone_Mids	Tone	Tone_pres	Tone_Mids
EBITnxtQ	0.448***	0.533***	0.283***
	(0.073)	(0.085)	(0.104)
EBITnxtY				0.542***	0.611***	0.430***
				(0.103)	(0.120)	(0.149)
EBITloss	−0.087***	−0.108***	−0.050***	−0.087***	−0.108***	−0.043***
	(0.011)	(0.013)	(0.015)	(0.011)	(0.012)	(0.015)
Return	0.046***	0.058***	0.009	0.048***	0.059***	0.009
	(0.008)	(0.010)	(0.012)	(0.008)	(0.010)	(0.012)
ACC	−0.055	−0.018	−0.017	−0.066	−0.028	−0.019
	(0.051)	(0.060)	(0.073)	(0.048)	(0.056)	(0.070)
Size	0.016*	0.036***	−0.002	0.020**	0.041***	−0.001
	(0.009)	(0.010)	(0.013)	(0.009)	(0.010)	(0.013)
BTM	0.010	0.023	0.014	0.014	0.028	0.006
	(0.027)	(0.032)	(0.039)	(0.027)	(0.031)	(0.038)
Returnvol	−0.227	0.322	−0.170	−0.186	0.348	−0.120
	(0.508)	(0.593)	(0.726)	(0.514)	(0.596)	(0.740)
EBITvol	1.145	0.537	2.160*	1.012	0.425	2.057*
	(0.806)	(0.941)	(1.154)	(0.817)	(0.946)	(1.175)
Busiseg	−0.583	−1.162**	0.072	−0.684	−1.199**	−0.204
	(0.480)	(0.561)	(0.687)	(0.481)	(0.558)	(0.693)
Geoseg	0.014	0.137*	−0.024	0.006	0.126	−0.053
	(0.069)	(0.080)	(0.098)	(0.068)	(0.079)	(0.098)
Firmage	−0.036***	−0.058***	−0.014	−0.039***	−0.059***	−0.022
	(0.013)	(0.016)	(0.019)	(0.013)	(0.015)	(0.019)
AF	0.051***	0.044***	0.057***	0.056***	0.050***	0.062***
	(0.012)	(0.014)	(0.017)	(0.012)	(0.013)	(0.017)
Constant	1.680	2.734**	0.056	1.859*	2.736**	0.749
	(1.031)	(1.204)	(1.476)	(1.029)	(1.192)	(1.481)
Observations	3203	3203	3203	3385	3384	3385
R-squared	0.593	0.525	0.453	0.581	0.515	0.444
YEAR FE	YES	YES	YES	YES	YES	YES
FIRM FE	YES	YES	YES	YES	YES	YES

Notes: The table reports the coefficients estimates from the OLS regression of managerial tone and future EBIT and other control variables described in Model (1). The dependent variable is Tone in Columns 1 and 4, Tone_pres in Columns 2 and 5, Tone_Mdis in Columns 3 and 6. All independent variables are defined in Appendix. All specifications include firm and year fixed effects. Standard errors are in parentheses.

***p < .01.

**p < .05.

*p < .1.

Table 4. Regression results for H2a.

	(1)	(2)	(3)	(4)	(5)	(6)
Variables	AFREV_Amount	AFREV_Prop	AFREV_Amount	AFREV_Prop	AFREV_Amount	AFREV_Prop
Tone	0.996***	0.132***
	(0.286)	(0.049)
Tone_pres			0.843***	0.131**
			(0.251)	(0.056)
Tone_Mdis					0.385**	0.041
					(0.187)	(0.032)
Return	0.080	0.008	0.079	0.007	0.121	0.014
	(0.079)	(0.028)	(0.078)	(0.029)	(0.082)	(0.027)
ACC	3.617	0.727	3.692	0.732	3.807	0.754
	(2.342)	(0.654)	(2.313)	(0.650)	(2.436)	(0.663)
Size	0.034	−0.078	0.025	−0.080	0.055	−0.075
	(0.089)	(0.065)	(0.087)	(0.066)	(0.090)	(0.065)
BTM	0.144	−0.020	0.190	−0.013	0.101	−0.025
	(0.276)	(0.077)	(0.267)	(0.078)	(0.280)	(0.078)
Returnvol	−0.121	−0.096	−0.081	−0.087	−0.226	−0.111
	(0.203)	(0.109)	(0.206)	(0.109)	(0.221)	(0.112)
Busiseg	0.908	1.111	0.840	1.110	1.292	1.141
	(1.538)	(1.029)	(1.603)	(1.038)	(1.663)	(1.027)
Geoseg	−0.049	0.083	−0.092	0.077	−0.012	0.086
	(0.184)	(0.146)	(0.195)	(0.145)	(0.172)	(0.146)
Firmage	−0.077	0.054	−0.073	0.055	−0.056	0.055
	(0.114)	(0.095)	(0.125)	(0.097)	(0.119)	(0.095)
Constant	−0.845	−2.061	−0.665	−2.065	−1.786	−2.124
	(4.196)	(3.179)	(4.572)	(3.229)	(4.593)	(3.159)
Observations	3421	3421	3421	3421	3421	3421
R-squared	0.189	0.043	0.189	0.044	0.186	0.042
YEAR FE	YES	YES	YES	YES	YES	YES
FIRM FE	YES	YES	YES	YES	YES	YES

Notes: The table reports the coefficients estimates from the OLS regression of analysts forecast revision and managerial tone and other control variables described in Model (2). The dependent variable is AFREV_Amount in Columns 1, 3 and 5, AFREV_Prop in Columns 2, 4 and 6. All independent variables are defined in Appendix. All specifications include firm and year fixed effects. Standard errors are in parentheses.

***p < .01.

**p < .05.

*p < .1.

Table 5. Regression results for H2b.

	(1)	(2)	(3)	(4)	(5)	(6)
Variables	Tone_A	Tone_A	Tone_A	Tone_A	Tone_A	Tone_A
Tone	0.335***
	(0.030)
Tone_pres		0.194***
		(0.027)
Tone_Mdis			0.287***
			(0.021)
Tone_R				6.432***
				(0.575)
Tone_pres_R					3.457***
					(0.467)
Tone_Mdis_R						6.168***
						(0.479)
EBITloss	−0.002	−0.010	−0.015	−0.006	−0.012	−0.018
	(0.017)	(0.018)	(0.017)	(0.017)	(0.017)	(0.017)
Return	0.006	0.010	0.019	0.005	0.009	0.018
	(0.014)	(0.014)	(0.013)	(0.014)	(0.014)	(0.013)
ACC	0.153**	0.132*	0.138*	0.159**	0.143*	0.147*
	(0.077)	(0.078)	(0.076)	(0.077)	(0.078)	(0.077)
Size	−0.010	−0.010	−0.005	−0.007	−0.008	−0.005
	(0.013)	(0.013)	(0.013)	(0.013)	(0.013)	(0.013)
BTM	0.003	−0.006	−0.005	0.000	−0.010	−0.005
	(0.040)	(0.040)	(0.039)	(0.040)	(0.040)	(0.039)
Returnvol	−0.014	−0.023	−0.023	−0.013	−0.020	−0.023
	(0.038)	(0.038)	(0.037)	(0.038)	(0.038)	(0.038)
EBITvol	0.245	0.215	0.248	0.224	0.204	0.229
	(0.215)	(0.217)	(0.213)	(0.215)	(0.217)	(0.213)
Busiseg	−0.519	−0.674	−0.281	−0.509	−0.656	−0.295
	(1.402)	(1.416)	(1.390)	(1.402)	(1.416)	(1.394)
Geoseg	0.472	0.531	0.171	0.519	0.583	0.184
	(1.041)	(1.052)	(1.032)	(1.041)	(1.051)	(1.035)
Firmage	−0.005	−0.008	−0.008	−0.005	−0.008	−0.009
	(0.016)	(0.016)	(0.016)	(0.016)	(0.016)	(0.016)
Constant	−0.029	0.243	0.246	−0.169	0.071	0.265
	(0.867)	(0.875)	(0.857)	(0.868)	(0.877)	(0.860)
Observations	3675	3674	3675	3675	3675	3675
R-squared	0.230	0.214	0.244	0.231	0.215	0.239
YEAR FE	YES	YES	YES	YES	YES	YES
FIRM FE	YES	YES	YES	YES	YES	YES

Notes: The table reports the coefficients estimates from the OLS regression of analyst’s tone and managerial tone and other control variables described in Model (3). The dependent variable is Tone_A in all columns. All independent variables are defined in Appendix. All specifications include firm and year fixed effects. Standard errors are in parentheses.

***p < .01.

**p < .05.

*p < .1.

Table 6. Regression results for H2c.

Panel A	(1)	(2)	(3)
Variables	Error	Error	Error
Ab_Tone	0.038***
	(0.003)
Ab_Tone_pres		0.019**
		(0.008)
Ab_Tone_Mids			0.029***
			(0.008)
All_star	−0.001	−0.001	−0.000
	(0.001)	(0.001)	(0.001)
Attend	−0.003***	−0.003***	−0.003***
	(0.001)	(0.001)	(0.001)
Brokersize	0.001***	0.001***	0.001***
	(0.000)	(0.000)	(0.000)
Experience	−0.001**	−0.001**	−0.001**
	(0.000)	(0.001)	(0.001)
Pre_accuracy	−0.000***	−0.000	−0.000
	(0.000)	(0.000)	(0.000)
Return	−0.016***	−0.016***	−0.016***
	(0.001)	(0.004)	(0.004)
ACC	0.185***	0.179***	0.177***
	(0.013)	(0.056)	(0.058)
Size	0.009***	0.009*	0.009*
	(0.002)	(0.005)	(0.005)
BTM	−0.126***	−0.127***	−0.124***
	(0.004)	(0.015)	(0.015)
Returnvol	−0.002	−0.003	−0.001
	(0.005)	(0.014)	(0.014)
Busiseg	−0.627***	−0.627***	−0.640***
	(0.075)	(0.169)	(0.173)
Geoseg	−0.040***	−0.039	−0.043
	(0.008)	(0.027)	(0.027)
Firmage	−0.047***	−0.047***	−0.048***
	(0.005)	(0.018)	(0.018)
Constant	2.078***	2.073***	2.119***
	(0.229)	(0.645)	(0.664)
Observations	13,262	13,262	13,262
R-squared	0.574	0.571	0.574
YEAR FE	YES	YES	YES
FIRM FE	YES	YES	YES

The table reports the coefficients estimates from the OLS regression of analysts forecast error and abnormal tone and other control variables described in Model (4). The dependent variable is Error in all columns. All independent variables are defined in Appendix. All specifications include firm and year fixed effects. Standard errors are in parentheses.

***p < .01.

**p < .05.

*p < .1.

Table 6. Continued.

	Panel B – All-star as Analysts’ ability			Panel C – Attend as Analysts’ ability			Panel D – Brokersize as Analysts’ ability
	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(11)	(12)
Variables	Error	Error	Error	Error	Error	Error	Error	Error	Error
Ab_Tone	0.032***			0.044***			0.085***
	(0.003)			(0.003)			(0.021)
Ab_Tone_pres		0.014***			0.023***			0.073***
		(0.003)			(0.003)			(0.018)
Ab_Tone_Mids			0.031***			0.033***			0.051***
			(0.003)			(0.003)			(0.016)
Ab_Tone × Analysts’ ability	−0.033***			−0.026***			−0.006**
	(0.009)			(0.007)			(0.003)
Ab_Tone_Pres × Analysts’ ability		−0.015***			−0.013**			−0.006***
		(0.005)			(0.005)			(0.002)
Ab_Tone_Mdis × Analysts’ ability			−0.008*			−0.017***			−0.003
			(0.005)			(0.005)			(0.002)
Other Controls	YES	YES	YES	YES	YES	YES	YES	YES	YES
Observations	13,262	13,262	13,262	13,262	13,262	13,262	13,262	13,262	13,262
R-squared	0.574	0.571	0.574	0.574	0.571	0.574	0.574	0.571	0.574
	Panel E – Experience as Analysts’ ability			Panel F – Pre_accuracy as Analysts’ ability
	(13)	(14)	(15)	(16)	(17)	(18)
Variables	Error	Error	Error	Error	Error	Error
Ab_Tone	0.065***			0.036***
	(0.012)			(0.003)
Ab_Tone_pres		0.038***			0.018***
		(0.010)			(0.002)
Ab_Tone_Mids			0.026***			0.029***
			(0.009)			(0.002)
Ab_Tone × Analysts’ ability	−0.008**			−0.003**
	(0.004)			(0.001)
Ab_Tone_Pres × Analysts’ ability		−0.006*			−0.002*
		(0.003)			(0.001)
Ab_Tone_Mdis × Analysts’ ability			0.001			0.000
			(0.003)			(0.001)
Other Controls	YES	YES	YES	YES	YES	YES
Observations	13,262	13,262	13,262	13,262	13,262	13,262
R-squared	0.574	0.571	0.574	0.574	0.571	0.574

Notes: Panels B, C, D, E, and F respectively showcase the moderation effects of All-star, Attend, Brokersize, Experience, and Pre_accuracy. All specifications include firm and year fixed effects. Standard errors are in parentheses.

***p < .01.

**p < .05.

*p < .1.

Table 7. Regression results for H3.

	(1)	(2)	(3)	(4)	(5)	(6)
Variables	Tone	Tone_pres	Tone_Mdis	Tone	Tone_pres	Tone_Mdis
EBITnxtQ	2.388***	2.657***	1.300
	(0.680)	(0.795)	(0.975)
Size × EBITnxtQ	−0.130***	−0.142***	−0.068
	(0.045)	(0.053)	(0.065)
EBITnxtY				2.853***	2.788***	1.020
				(0.910)	(1.055)	(1.311)
Size × EBITnxtY				−0.155**	−0.146**	−0.040
				(0.061)	(0.070)	(0.087)
EBITloss	−0.086***	−0.107***	−0.050***	−0.086***	−0.107***	−0.042***
	(0.011)	(0.013)	(0.015)	(0.011)	(0.012)	(0.015)
Return	0.046***	0.057***	0.008	0.048***	0.059***	0.009
	(0.008)	(0.010)	(0.012)	(0.008)	(0.010)	(0.012)
ACC	−0.057	−0.020	−0.018	−0.061	−0.023	−0.018
	(0.051)	(0.060)	(0.073)	(0.048)	(0.056)	(0.070)
Size	0.021**	0.041***	0.001	0.027***	0.047***	0.000
	(0.009)	(0.011)	(0.013)	(0.009)	(0.011)	(0.013)
BTM	0.007	0.019	0.012	0.011	0.025	0.006
	(0.027)	(0.032)	(0.039)	(0.027)	(0.031)	(0.038)
Returnvol	−0.340	0.198	−0.230	−0.324	0.218	−0.156
	(0.508)	(0.594)	(0.729)	(0.517)	(0.599)	(0.745)
EBITvol	1.365*	0.778	2.275**	1.251	0.650	2.118*
	(0.809)	(0.945)	(1.159)	(0.821)	(0.951)	(1.183)
Busiseg	−0.538	−1.113**	0.095	−0.640	−1.158**	−0.193
	(0.480)	(0.560)	(0.687)	(0.481)	(0.558)	(0.694)
Geoseg	0.002	0.125	−0.030	−0.002	0.119	−0.055
	(0.069)	(0.080)	(0.098)	(0.068)	(0.079)	(0.098)
Firmage	−0.034**	−0.057***	−0.013	−0.037***	−0.058***	−0.022
	(0.013)	(0.016)	(0.019)	(0.013)	(0.015)	(0.019)
AF	0.051***	0.043***	0.057***	0.057***	0.051***	0.062***
	(0.012)	(0.014)	(0.017)	(0.012)	(0.013)	(0.017)
Constant	1.512	2.550**	−0.032	1.673	2.561**	0.702
	(1.031)	(1.205)	(1.478)	(1.031)	(1.194)	(1.485)
Observations	3203	3203	3203	3385	3384	3385
R-squared	0.594	0.527	0.453	0.582	0.516	0.444
YEAR FE	YES	YES	YES	YES	YES	YES
FIRM FE	YES	YES	YES	YES	YES	YES

Notes: The table reports the moderation effect of Size on the association between tone and future EBIT described in Model (5). The dependent variable is Tone in Columns 1 and 4, Tone_pres in Columns 2 and 5, Tone_Mdis in Columns 3 and 6. All independent variables are defined in Appendix. All specifications include firm and year fixed effects. Standard errors are in parentheses.

***p < .01.

**p < .05.

*p < .1.

Table

Tone Variable
Tone	Managers’ net tone in the entire conference transcript, calculated as (pos – neg)/(pos + neg)
Tone_pres	Managers’ net tone in the presentation section, calculated as (pos – neg)/(pos + neg)
Tone_Mdis	Managers’ net tone in the discussion section, calculated as (pos – neg)/(pos + neg)
Tone_A	Analysts’ net tone in discussion section, calculated as (pos – neg)/(pos + neg)
Tone_R	Managers’ net tone in the entire conference transcript, calculated as (pos – neg)/total, used for robustness analysis
Tone_pres_R	Managers’ net tone in the presentation section, calculated as (pos – neg)/total, used for robustness analysis
Tone_Mdis_R	Managers’ net tone in the discussion section, calculated as (pos – neg)/total, used for robustness analysis
Tone_A_R	Analysts’ net tone in discussion section, calculated as (pos – neg)/total, used for robustness analysis
Ab_Tone	Abnormal component of the Tone, calculated as the residue term from the model 1 (regressing Tone on the future performance)
Ab_Tone_pres	Abnormal component of the Tone_pres, calculated as the residue term from the model 1 (regressing Tone_pres on the future performance)
Ab_Tone_Mdis	Abnormal component of the Tone_Mdis, calculated as the residue term from the model 1 (regressing Tone_Mdis on the future performance)
Analyst Variable
AFREV_Amount	Average analyst forecast revision, the mean analyst forecast of earnings per share (EPS) for quarter t + 1 for all forecasts issued within the 20-day window following the earnings call, less the mean analyst EPS forecast for quarter t + 1 directly before the quarter t earnings call, scaled by stock price at the beginning of quarter t multiplied with 100.
AFREV_Prop	The proportion of analyst revision amount. Using analyst forecast revision amount AFREV_Amount scaled by the mean analyst forecast of EPS for quarter t + 1 for all forecasts issued within the 20-day window before the earnings call.
Error	Analyst forecast error, the mean absolute difference between the forecasted earnings per share (EPS) for quarter t + 1 within the 20-day window following the earnings call and the actual EPS for quarter t + 1, scaled by the actual EPS for quarter t + 1.
Pre_accuracy	The absolute value of the analyst’s forecast error for the firm’s previous fiscal quarter, scaled by the stock price two trading days before the earnings announcement date. We multiply by −1 so a higher Pre_accuracy value indicates higher accuracy.
Experience	The ln value of the number of quarters for which the analyst has issued earnings forecasts for the firm before the current quarter.
Brokersize	The ln value of the number of analysts employed by the brokerage firm issuing earnings forecasts in the quarter.
All-star	A dummy variable that equals 1 if the analyst is named to the Institutional Investor’s All-America Research Team, Developed Europe Research Team, Emerging Europe Middle East Africa Research Team, or UK small & Midcap Research Team in the past year before the forecast date, and 0 otherwise.
Attend	A dummy variable that equals 1 if the analyst personally attends the earning conference call in the quarter and speaks to ask a question or interact with managers in the Q&A session, and 0 otherwise.
Financial Variable
EBIT	Quarterly earnings before interest and taxes (EBIT) scaled by total assets
EBITloss	A dummy variable that equals 1 if EBIT is less than 0, and 0 otherwise
EBITnxtQ	EBIT of next quarter
EBITnxtY	Average EBIT of next four quarters
Epretax	Quarterly pre-tax income scaled by total assets used for robustness analysis
EpretaxnxtQ	Epretax of next quarter
EpretaxnxtY	Average Epretax of next four quarters
ROA	Return on asset
ROAnxtQ	Return on asset of next quarter
ROAnxtY	Average ROA of next four quarters
MBE	An indicator variable equals to one if the firm meets for beats the average analyst forecast for a given quarter
SURP	The difference between quarterly EPS and the mean analyst forecast scaled by stock price at the beginning of the quarter.
Return	Contemporaneous stock return
Control variable
ACC	Accruals calculated as earnings minus cash flow from operations, scaled by total assets
Size	The logarithm value of the market value of equity
BTM	Book-to-market ratio calculated as total assets scaled by market value of equity plus total liability
Busiseg	The logarithm value of 1 plus the number of business segments
Geoseg	The logarithm value of 1 plus the number of geographical segments
Firmage	The number of years since a firm appeared in the DataStream
Returnvol	Stock return volatility calculated using past 12-month stock return data
EBITvol	Standard deviation of EBIT calculated using past 5-year data
Epretaxvol	Standard deviation of Epretax calculated using past 5-year data, used for robustness
AF	The number of analysts following calculated as the logarithm value of total estimates number on the mean of earnings per share

Notes: Tone variables are measured with texts in the earnings conference call collected through Thomson Reuters. Analyst forecast data is sourced from I/B/E/S. Analyst all star status is sourced from Institutional Investor. Financial variables and control variables come from DataStream.