CEOs Using More Words In Earnings Calls Signal Future Earnings and Share Price Declines
According to a new report by by S&P Global Market Intelligence’s Quantamental Research team, CEOs using more words per sentence or increasing the number of polysyllabic words in their earnings calls, can be telltale signs of future earnings and share price declines.
The report looked at how Natural Language Processing (NLP) can be used to quantify the sentiment of earnings calls. The report included a heat map of quarterly earnings sentiment by sector, an example of what kinds of words contribute to a negative sentiment reading, and more.
Learn more HERE.