Words matter: Earnings call language can foreshadow credit risk
Words company officials use in quarterly earnings calls with investors and analysts can be telling. An Olin Business School researcher and co-authors conducted a detailed, machine-learning study of such earnings calls.
Restating earnings hurts the company itself, and its peers
When one company restates earnings, best to see what its peers are up to.No company wants to issue an accounting restatement; it’s a guaranteed way for the share price to drop 10 percent, on average. Investors, analysts and journalists alike view restatements as an indication of a problem within the company. As it turns out, restatements indicate that there is value in looking at its industry peer firms. More…