Who Believes the Hype? An Experimental Examination of how Language Affects Investor Judgments

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Does concrete language in disclosures increase willingness to invest? (2014, unknown): “…tone (Henry 2008; Kothari et al. 2009; Feldman et al. 2010; Demers and Vega 2011; Davis et al. 2012, 2014; Davis and Tama-Sweet 2012), vividness (Hales et al. 2011), and readability (Li 2008; You and Zhang 2009; Miller 2010; Rennekamp 2012; Lawrence 2013; Tan et al. 2013; Lundholm et al. 2014).”
Processing Fluency and Investors’ Reactions to Disclosure Readability (2012, unknown): “Hales et al. (2010) find that investors are only sensitive to differences between vivid and pallid language when it conveys preference-inconsistent information.”
Hyperbole or Reality? Investor Response to Extreme Language in Earnings Conference Calls (2019, methodology): “In the context of financial reporting, Hales, Kuang, and Venkataraman (2011) demonstrate that investment positions can influence whether investors attend to differences in linguistic characteristics, like vividness or extremity, when revising their beliefs about future performance.”