Vocal Cues and Manager Reporting Goals
This dissertation presents experimental and qualitative evidence on the acoustic properties of financial communications and how they relate to managers’ reporting objectives. Managers frequently attempt to persuade investors and other market participants to interpret information in a particular way. While research in accounting has examined characteristics that make a disclosure persuasive to investors, few papers examine whether and how managers attempt to persuade. Drawing on research in psychology, I show that managers increase their vocal pitch, pitch variation, volume, volume variation, and speech rate when attempting to persuade prospective investors to invest. Relative to this goal, I find that managers lower their pitch and pitch variation when attempting to persuade current investors to maintain their investment. To examine key assumptions of my experiment and provide rich descriptive evidence to contextualize my findings, I also conduct semi-structured interviews with Investor Relations professionals. This study has implications for preparers of financial communications, for investors using these disclosures, and for researchers attempting to identify manager reporting goals and understand the determinants of nonverbal behaviors in financial communications.