Affiliation:
1. College of Management and Economics Tianjin University Tianjin China
2. School of Management Tianjin University of Technology Tianjin China
Abstract
AbstractWe investigate how managers' evasiveness affects peer firms' stock returns. Managers' evasiveness is measured by the degree of managers' irrelevant answers and non‐answers during earnings communication conferences. Our results show that peer firms' investors react negatively to managers' evasiveness. Moreover, we find that the spillover effects are stronger for peer firms with lower information transparency, and the leading firms with a higher market power or a higher leverage ratio.
Funder
National Natural Science Foundation of China