The impact of disclosure characteristics of conference calls on bankruptcy risk: From perspectives of redundancy and boilerplate

Abstract

In recent years, the volatility of global financial markets has attracted widespread attention, particularly due to numerous bank bankruptcies it has triggered. This gradual realization underscores the critical importance of adequate information disclosure for a company’s stable operation. Conference call represent a significant form of voluntary information disclosure by businesses. This paper aims to study the impact of redundancy and boilerplate in conference call on a company’s bankruptcy risk. By quantifying redundancy and boilerplate indicators in conference call textual data as explanatory variables and employing Altman’s Z-score model to measure a company’s bankruptcy risk as the explained variable, the study utilizes a fixed-effects model for regression analysis and conducts robustness tests on the model. The final research findings indicate that lower redundancy and higher boilerplate in conference call documents are conducive to reducing a company’s bankruptcy risk, thereby aiding companies in achieving long-term, stable operational status. These research results hold significant reference value for investors and corporate managers in the financial market, providing insights into enhancing corporate stability and market trust through improved methods of telephone conference information disclosure.