Do vocal cues matter in information disclosure? Evidence from IPO online roadshows in the SSE STAR market

Abstract

In this study, we investigate whether vocal cues expressed by management in IPO online roadshows in the SSE STAR Market play an information role. Using deep learning techniques, we classify the emotional tendencies of vocal cues in IPO online roadshows and construct quantitative proxy variables. After a series of empirical analyses, we find that vocal emotions are positively associated with first-day stock returns after IPO. In addition, we find that vocal emotions have predictive power for future operating performance after IPO. Our findings still hold after a series of robustness checks. Through additional analyses, we provide evidence that information content in the prospectus and investor sentiment play moderating and mediating roles, respectively, in the relationship between vocal emotions and the first-day stock returns after IPO. Moreover, we find that the vocal emotions expressed in the presentation section and the management tone in the Q&A section develop synergistic effects. Finally, we find that the information role played by vocal emotions exhibits timeliness. Our findings elucidate the information role of vocal cues and highlight the importance of IPO online roadshows in the SSE STAR Market.