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Transcript Qa Evasion

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JAR
2024
J. of Accounting Research
Bochkay, Brown, Leone & Tucker (2024, forthcoming *JAR*): "Managers' Use of
Citation only, paper link pending.

In plain terms

Measures semantic distance between an analyst's question and management's answer. Evasive answers (high distance) predict 60-day underperformance.

How it works

Bochkay-Brown-Leone-Tucker (2024 JAR) "Managers' Use of Language in Earnings Conference Calls and Future Performance." Signal is the semantic distance between an analyst's question and management's answer. When the answer is far from the question (mgmt evading), the firm underperforms over the next 60 days. Reported: LS quintile Sharpe 1.4, 7.8% annualised. v1 uses Jaccard token-overlap distance as a CPU-only proxy; v2 will swap to sentence-embedding cosine.

No live results for this strategy yet. Charts appear once it has earned a top spot on at least one stock, either on its own or as part of a blend of several strategies.
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Data dependencies

  • Daily prices

    Adjusted-close OHLCV for every US-listed ticker; primary price feed.

  • Earnings call transcripts

    Full earnings-call transcripts (prepared + Q&A), tokenised.

Expected edge

Reported return
7.8% ann. L/S (Bochkay-Brown-Leone-Tucker 2024)
Reported Sharpe
1.4 quintile, 60d
Tested over
2005-2022

Reported: LS quintile Sharpe 1.4, 7.8% annualised, 60-day horizon.

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