Identifying Lying CEOs Is All in Their Language

Learn the words concealing threats to your investment.

I have taken off my robe;
How can I put it on again?
—Song of Solomon

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Although possibly a case of someone having too much time on their hands, Stanford Graduate School of Business professor David Larcker has done a study determining whether a company's CEO or CFO is lying about the company's performance during an earnings conference call...




There has to be an investment research group already producing this kind of analysis — programatically scanning conference calls and raising red flags. The Stanford Graduate School of Business ought come up with a measure gauging the language used by corporate executives. What might this be called? A new bull marker?

—Tom Chechatka