Please use this identifier to cite or link to this item: http://hdl.handle.net/10125/70452

Orders Backlog in Earnings Conference Calls

File Size Format  
HARC-2021 paper 10.pdf 511.36 kB Adobe PDF View/Open

Item Summary

Title:Orders Backlog in Earnings Conference Calls
Authors:Kate Suslava
Suresh Govindaraj
Ronen Feldman
Joshua Livnat
Keywords:Order Backlog
Conference Calls
Qualitative Disclosures
Stock Returns
Date Issued:02 Jun 2020
Abstract:Firm disclosure of order backlog (OB) is considered important to assess future sales and profits. The extant literature on OB has generally documented positive associations between increases in OB and market returns. These associations were based on annual disclosures of backlog in 10-K filings, and could have been caused by other simultaneous disclosures that were also correlated with order backlog. To focus on the direct effects of backlog on market participants, we use references to OB in earnings conference call transcripts. We find incremental market reactions to OB after controlling for earnings surprise and other information communicated during the conference call. Our findings also reveal that OB disclosures are more relevant when they are supported by numbers and when firms derive a material amount of their demand from OB.
URI:http://hdl.handle.net/10125/70452
Appears in Collections: 09 Financial Accounting 2: Disclosure


Please email libraryada-l@lists.hawaii.edu if you need this content in ADA-compliant format.

Items in ScholarSpace are protected by copyright, with all rights reserved, unless otherwise indicated.