A literature review on earnings communication calls: information asymmetry, signaling, and research progress
Research Article
Open Access
CC BY

A literature review on earnings communication calls: information asymmetry, signaling, and research progress

Honglin Wang 1*
1 University of Macau, Macau SAR, China
*Corresponding author: wang_honglin02@126.com
Published on 26 August 2025
Journal Cover
JAEPS Vol.18 Issue 8
ISSN (Print): 2977-571X
ISSN (Online): 2977-5701
Download Cover

Abstract

Earnings communication conferences (ECCs) have emerged as a critical interactive platform for information dissemination in China’s capital market, playing a pivotal role in mitigating information asymmetry between firms and investors. This paper conducts a systematic literature review of 15 key studies on ECCs published in top journals from 2020 to 2024, aiming to synthesize existing research and identify future directions. The review focuses on three core dimensions: the structure and functions of ECCs (with particular attention to the information-rich question-and-answer session), methodological approaches (including textual analysis of management tone, Q&A semantic similarity via BERT, and measurements of managerial traits (humor and narcissism), and theoretical frameworks (predominantly information asymmetry theory and signaling theory). Empirical findings highlight the impact of ECCs on market reactions, such as stock price dynamics and analysts’ forecast accuracy, as well as the influence of corporate characteristics (e.g., CSR performance) and managerial behaviors on communication quality. This review addresses the scarcity of comprehensive syntheses in extant literature, providing foundational insights for scholars exploring ECC-related topics and outlining avenues for future research.

Keywords:

ECCs, information asymmetry, textual analysis, signaling theory, Q&A session.

View PDF
Wang,H. (2025). A literature review on earnings communication calls: information asymmetry, signaling, and research progress. Journal of Applied Economics and Policy Studies,18(8),24-31.

References

[1]. Pronk, M., Matsumoto, D., & Roelofsen, E. (2011). What Makes Conference Calls Useful? The Information Content of Managers' Presentations and Analysts' Discussion Sessions.The Accounting Review(Vol. 86), pp. 1383–1414). doi: 10.2308/accr-10034.

[2]. Rennekamp Kristina M., Sethuraman Mani, & Steenhoven., Blake A. (2022), Engagement in earnings conference calls,Journal of Accounting and Economics, 101498. https: //doi.org/10.1016/j.jacceco.2022.101498.

[3]. Fu, X., Wu, X., & Zhang, Z. (2021). The information role of earnings conference call tone: Evidence from stock price crash risk.Journal of Business Ethics, 173, 643–660. https: //doi.org/10.1007/s10551-019-04326-1

[4]. Gow, I. D., Larcker, D. F., & Zakolyukina, A. A. (2021). Non-answers during conference calls.Journal of Accounting Research, 59, 1349–1384. https: //doi.org/10.1111/1475-679X.12371.

[5]. Liu, Q., Chi, W., & Wang, J. (2024). How informative is question-and-answer similarity to financial analysts? Evidence from Chinese earnings communication conferences.Economic Modelling, 135, 106700. https: //doi.org/10.1016/j.econmod.2024.106700

[6]. Yang, B., Ren, X., & Liu, Y. (2024). The spillover effects of managers' evasiveness: Evidence from earnings communication conferences.Accounting & Finance, 64(3), 2789-2815. https: //doi.org/10.1111/acfi.13234

[7]. Zhang, X., Hu, J., & Li, C. T. (2022). Short - selling mechanism and management tone manipulation: Evidence from textual analysis of earnings communication conferences.Economic Science(04), 138–153.

[8]. Huang, X. D., Zeng, Y., & Dai, Y. (2024). Management abnormal tone and stock price delay: Textual analysis based on earnings communication conferences of Chinese listed companies.Journal of Quantitative Economics(01), 178–203.

[9]. Call, A. C., Flam, R. W., Lee, J. A., & Sharp, N. Y. (2024). Managers’ use of humor on public earnings conference calls.Review of Accounting Studies, 29, 2650–2687. https: //doi.org/10.1007/s11142-023-09764-x.

[10]. Lammers, F., & Pape, U. (2025). CEO Narcissism and Linguistic Complexity in Earnings Conference Calls.Accounting & Finance, 0, 1–26. https: //doi.org/10.1111/acfi.70031

[11]. DeLisle, R. J., Grant, A., & Mao, R. (2024). Does environmental and social performance affect pricing efficiency? Evidence from earnings conference call tones.Journal of Corporate Finance, 86, 102585. https: //doi.org/10.1016/j.jcorpfin.2024.102585

[12]. Pinto, I., & Gaio, C. (2025). ESG performance and information asymmetry: The moderating role of ownership concentration.Corporate Social Responsibility and Environmental Management. https: //doi.org/10.1002/csr.3260

[13]. Ding, M., Shen, M., & Suardi, S. (2022). Blockholders, tradability and information asymmetry: Evidence from Chinese listed firms.Research in International Business and Finance, 60, 101607. https: //doi.org/10.1016/j.ribaf.2021.101607

[14]. Connelly, B. L., Certo, S. T., Reutzel, C. R., DesJardine, M. R., & Zhou, Y. S. (2025). Signaling theory: State of the theory and its future.Journal of Management, 51(1), 24–61. https: //doi.org/10.1177/01492063241268459

[15]. Xu, Liang. (2021). Stock price informativeness and managerial inefficiency.International Review of Economics and Finance, pp. 348-364. https: //doi.org/10.1016/j.iref.2021.03.006

[16]. De Amicis, C., Falconieri, S., & Tastan, M. (2021). Sentiment analysis and gender differences in earnings conference calls.Journal of Corporate Finance, 71, 101809. https: //doi.org/10.1016/j.jcorpfin.2020.101809

[17]. Palmon, D., Chen, Y., & Chen, B. (2024). Corporate Social Responsibility and Information Asymmetry: Do Earnings Conference Calls Play a Role?Journal of Business Ethics, 194, 77–101. https: //doi.org/10.1007/s10551-023-05605-8.

[18]. Yang, B., Liu, Y., & Su, Y. (2022). Earnings communication conferences and post-earnings-announcement drift: Evidence from China.Accounting & Finance, 62(1), 1 - 41. https: //doi.org/10.1111/acfi.12986

[19]. Chen, J. V., Nagar, V., & Schoenfeld, J. (2018). Manager-analyst conversations in earnings conference calls.Review of Accounting Studies, 23, 1315–1354. https: //doi.org/10.1007/s11142-018-9453-3.

[20]. Luo, R., & Ye, Y. (2024). Pressure from words: The tone of investors in Chinese earnings communication conferences and managerial myopia.Accounting & Finance, 64(1), 833-868. https: //doi.org/10.1111/acfi.13167.

References

[1]. Pronk, M., Matsumoto, D., & Roelofsen, E. (2011). What Makes Conference Calls Useful? The Information Content of Managers' Presentations and Analysts' Discussion Sessions.The Accounting Review(Vol. 86), pp. 1383–1414). doi: 10.2308/accr-10034.

[2]. Rennekamp Kristina M., Sethuraman Mani, & Steenhoven., Blake A. (2022), Engagement in earnings conference calls,Journal of Accounting and Economics, 101498. https: //doi.org/10.1016/j.jacceco.2022.101498.

[3]. Fu, X., Wu, X., & Zhang, Z. (2021). The information role of earnings conference call tone: Evidence from stock price crash risk.Journal of Business Ethics, 173, 643–660. https: //doi.org/10.1007/s10551-019-04326-1

[4]. Gow, I. D., Larcker, D. F., & Zakolyukina, A. A. (2021). Non-answers during conference calls.Journal of Accounting Research, 59, 1349–1384. https: //doi.org/10.1111/1475-679X.12371.

[5]. Liu, Q., Chi, W., & Wang, J. (2024). How informative is question-and-answer similarity to financial analysts? Evidence from Chinese earnings communication conferences.Economic Modelling, 135, 106700. https: //doi.org/10.1016/j.econmod.2024.106700

[6]. Yang, B., Ren, X., & Liu, Y. (2024). The spillover effects of managers' evasiveness: Evidence from earnings communication conferences.Accounting & Finance, 64(3), 2789-2815. https: //doi.org/10.1111/acfi.13234

[7]. Zhang, X., Hu, J., & Li, C. T. (2022). Short - selling mechanism and management tone manipulation: Evidence from textual analysis of earnings communication conferences.Economic Science(04), 138–153.

[8]. Huang, X. D., Zeng, Y., & Dai, Y. (2024). Management abnormal tone and stock price delay: Textual analysis based on earnings communication conferences of Chinese listed companies.Journal of Quantitative Economics(01), 178–203.

[9]. Call, A. C., Flam, R. W., Lee, J. A., & Sharp, N. Y. (2024). Managers’ use of humor on public earnings conference calls.Review of Accounting Studies, 29, 2650–2687. https: //doi.org/10.1007/s11142-023-09764-x.

[10]. Lammers, F., & Pape, U. (2025). CEO Narcissism and Linguistic Complexity in Earnings Conference Calls.Accounting & Finance, 0, 1–26. https: //doi.org/10.1111/acfi.70031

[11]. DeLisle, R. J., Grant, A., & Mao, R. (2024). Does environmental and social performance affect pricing efficiency? Evidence from earnings conference call tones.Journal of Corporate Finance, 86, 102585. https: //doi.org/10.1016/j.jcorpfin.2024.102585

[12]. Pinto, I., & Gaio, C. (2025). ESG performance and information asymmetry: The moderating role of ownership concentration.Corporate Social Responsibility and Environmental Management. https: //doi.org/10.1002/csr.3260

[13]. Ding, M., Shen, M., & Suardi, S. (2022). Blockholders, tradability and information asymmetry: Evidence from Chinese listed firms.Research in International Business and Finance, 60, 101607. https: //doi.org/10.1016/j.ribaf.2021.101607

[14]. Connelly, B. L., Certo, S. T., Reutzel, C. R., DesJardine, M. R., & Zhou, Y. S. (2025). Signaling theory: State of the theory and its future.Journal of Management, 51(1), 24–61. https: //doi.org/10.1177/01492063241268459

[15]. Xu, Liang. (2021). Stock price informativeness and managerial inefficiency.International Review of Economics and Finance, pp. 348-364. https: //doi.org/10.1016/j.iref.2021.03.006

[16]. De Amicis, C., Falconieri, S., & Tastan, M. (2021). Sentiment analysis and gender differences in earnings conference calls.Journal of Corporate Finance, 71, 101809. https: //doi.org/10.1016/j.jcorpfin.2020.101809

[17]. Palmon, D., Chen, Y., & Chen, B. (2024). Corporate Social Responsibility and Information Asymmetry: Do Earnings Conference Calls Play a Role?Journal of Business Ethics, 194, 77–101. https: //doi.org/10.1007/s10551-023-05605-8.

[18]. Yang, B., Liu, Y., & Su, Y. (2022). Earnings communication conferences and post-earnings-announcement drift: Evidence from China.Accounting & Finance, 62(1), 1 - 41. https: //doi.org/10.1111/acfi.12986

[19]. Chen, J. V., Nagar, V., & Schoenfeld, J. (2018). Manager-analyst conversations in earnings conference calls.Review of Accounting Studies, 23, 1315–1354. https: //doi.org/10.1007/s11142-018-9453-3.

[20]. Luo, R., & Ye, Y. (2024). Pressure from words: The tone of investors in Chinese earnings communication conferences and managerial myopia.Accounting & Finance, 64(1), 833-868. https: //doi.org/10.1111/acfi.13167.

Cite this article

Wang,H. (2025). A literature review on earnings communication calls: information asymmetry, signaling, and research progress. Journal of Applied Economics and Policy Studies,18(8),24-31.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Journal: Journal of Applied Economics and Policy Studies

Volume number: Vol.18
Issue number: Issue 8
ISSN: 2977-5701(Print) / 2977-571X(Online)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:

1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.

2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.

3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).

For authors
For editors
For reviewers

Cookies are used by this site.
Copyright © 2024 EWA Publishing, its licensors, and contributors. All rights reserved, including text and data mining, AI training, and similar technologies.