University of Sussex
ES Incidents and Tones.pdf (1.12 MB)

Does environmental and social performance affect pricing efficiency? Evidence from earnings conference call tones

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journal contribution
posted on 2024-05-15, 10:11 authored by R Jared DeLisle, Andrew Grant, Ruiqi MaoRuiqi Mao
This paper examines how environmental and social (ES) performance, proxied by related incidents, affect the managerial and analyst tones in quarterly earnings conference calls and its incremental effect on post-earnings call returns. We document that firms experiencing poor ES performance in the quarter prior to the earnings call exhibit more negative management tone after controlling for quarterly financial performance metrics. Tone difference in conference calls between managers and analysts predicts negative abnormal returns in the three-day window around the call. In the 60-day post-call period, we show that firms with poor ES performance exhibit returns negatively related to the tone difference on the conference call – low tone difference leads to return continuation and high tone difference predicts reversals for firms with positive earnings surprises. These results are consistent with an increase in information asymmetry and lower transparency for firms following poor ES performance.


Publication status

  • Published

File Version

  • Accepted version


Journal of Corporate Finance




Elsevier BV



Article number


Department affiliated with

  • Accounting and Finance Publications
  • Business and Management Publications


University of Sussex

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Peer reviewed?

  • Yes