What is it about?
This case study examines how sell-side analysts ask questions in earnings conference calls and how they manage information needs without compromising the relationship with the company. Findings showed that analysts make more than one formulation for the same question, that these formulations gain strength when a speaker goes back to a question, and that variations in the degree of generality/specificity of each version of a question play a major role in managing the analyst’s interactive goal.
Why is it important?
It is important because earnings conference calls are viewed as a mechanism to reduce information assymetry, but analysts might have to be careful with the way they ask questions. In doing so, they themselves may be agents of providing the escape route given to the company executive not to answer their question well enough. It reveals the complexity of communication in investor relations
The following have contributed to this page: Silvia Pereira