TY  - UNPD
A1  - Bannier, Christina E.
A1  - Pauls, Thomas
A1  - Walter, Andreas
T1  - CEO-speeches and stock returns
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 583
N2  - We analyze the market reaction to the sentiment of the CEO speech at the Annual General Meeting (AGM). As the AGM is typically preceded by several information disclosures, the CEO speech may be expected to contribute only marginally to investors’ decision-making. Surprisingly, however, we observe from the transcripts of 338 CEO speeches of German corporates between 2008 and 2016 that their sentiment is significantly related to abnormal stock returns and trading volumes following the AGM. Using a novel business-specific German dictionary based on Loughran and McDonald (2011), we find a negative association of the post-AGM returns with the speeches’ negativity and a positive association with the speeches’ relative positivity (i.e. positivity relative to negativity). Relative positivity moreover corresponds with a lower trading volume in a short time window surrounding the AGM. Investors hence seem to perceive the sentiment of CEO speeches at AGMs as a valuable indicator of future firm performance.
T3  - CFS working paper series - 583 
KW  - Textual Sentiment
KW  - CEO Speeches
KW  - Market Efficiency
KW  - Textual Analysis
KW  - Annual General Meeting
Y1  - 2017
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/43869
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-438693
UR  - https://ssrn.com/abstract=3051151
IS  - October 11, 2017
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -