Bannier, Christina E. Pauls, Thomas Walter, Andreas
Year of Publication:
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: Behavioral Finance G16-V3
We analyze the market reaction to the sentiment of the CEO speech at the Annual General Meeting (AGM). Adapting a finance-specific German dictionary based on Loughran and McDonald (2011), we find that CEO speeches' textual sentiment is significantly related to abnormal stock returns and trading volume around the AGM. Investors hence seem to perceive the speeches' sentiment as a valuable indicator of future firm performance.