The main purpose of this study is to investigate whether the likelihood, frequency and
information content of conference calls are positively associated with innovation. The
study is based on 534 conference calls conducted in 340 firm-years from 1997 to 2001 in
Taiwan. Our findings indicate that more innovative firms are more likely to conduct
conference calls and conduct them more frequently than less innovative firms.
Consistent with prior research, high growth firms and larger firms are more likely to hold
conference calls, and hold them more frequently, than other firms. Low price-earnings
firms are nonetheless more likely and frequent to host conference calls when their stock
price has been undervalued. We also find supporting evidence that cumulative abnormal
returns surrounding the event dates of conference calls are positively associated with the
level of and change in innovation investments. In addition, our empirical results of
market reaction driven by conference calls are still robust after controlling the effect of
selection bias, market expectation, and timing of conducting conference calls. Finally, we
also find that firms that more innovative firms are more likely to discuss innovation
activities during conference calls.
IEEE Transactions on Engineering Management, 54(4), 1-18