Orders Backlog in Earnings Conference Calls

dc.contributor.author Suslava, Kate
dc.contributor.author Govindaraj, Suresh
dc.contributor.author Feldman, Ronen
dc.contributor.author Livnat, Joshua
dc.date.accessioned 2020-12-01T00:45:23Z
dc.date.available 2020-12-01T00:45:23Z
dc.date.issued 2020-06-02
dc.description.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.
dc.identifier.uri http://hdl.handle.net/10125/70452
dc.subject Order Backlog
dc.subject Conference Calls
dc.subject Qualitative Disclosures
dc.subject Stock Returns
dc.title Orders Backlog in Earnings Conference Calls
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