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Conference Paper: Are Investors’ Corporate Site Visits Informative?

TitleAre Investors’ Corporate Site Visits Informative?
Authors
Keywordscorporate site visits
selective access
selective disclosure
information acquisition
Issue Date2013
PublisherChinese Accounting Professors' Association of North America (CAPANA).
Citation
The 6h Annual Research Conference of Chinese Accounting Professors' Association of North America (CAPANA), Hong Kong, China, 7-9 July 2013 How to Cite?
AbstractCorporate site visit is an important type of investors’ information acquisition activities, but its usefulness is not well understood in the literature, partially due to the lack of data. Using a unique dataset of corporate site visits in China, we analyze the information content and the determinants of corporate site visits. Our main findings are as follows. First, we document a significant market reaction to corporate site visits and the market reaction is stronger for group visits, for visits conducted by mutual fund managers, for visits covering firm-specific topics, and for firms with poorer information environment. Second, we find that stock returns around site visits are positively associated with forthcoming earnings news, suggesting that corporate site visits enable investors to obtain information predictive of future earnings. Lastly, consistent with the cost and benefit of conducting site visits, investors are more likely to conduct site visits to profitable firms, firms with more business segments, firms with a higher market share, and firms located closer to economic centers. Additional tests indicate that site visits represent selective access events, not selective disclosure events. Overall, our study contributes to the literature by presenting the first systematic evidence on the information role of corporate site visits.
Persistent Identifierhttp://hdl.handle.net/10722/187713

 

DC FieldValueLanguage
dc.contributor.authorCheng, Qen_US
dc.contributor.authorDu, Fen_US
dc.contributor.authorWang, Xen_US
dc.contributor.authorWang, Yen_US
dc.date.accessioned2013-08-21T07:10:35Z-
dc.date.available2013-08-21T07:10:35Z-
dc.date.issued2013en_US
dc.identifier.citationThe 6h Annual Research Conference of Chinese Accounting Professors' Association of North America (CAPANA), Hong Kong, China, 7-9 July 2013en_US
dc.identifier.urihttp://hdl.handle.net/10722/187713-
dc.description.abstractCorporate site visit is an important type of investors’ information acquisition activities, but its usefulness is not well understood in the literature, partially due to the lack of data. Using a unique dataset of corporate site visits in China, we analyze the information content and the determinants of corporate site visits. Our main findings are as follows. First, we document a significant market reaction to corporate site visits and the market reaction is stronger for group visits, for visits conducted by mutual fund managers, for visits covering firm-specific topics, and for firms with poorer information environment. Second, we find that stock returns around site visits are positively associated with forthcoming earnings news, suggesting that corporate site visits enable investors to obtain information predictive of future earnings. Lastly, consistent with the cost and benefit of conducting site visits, investors are more likely to conduct site visits to profitable firms, firms with more business segments, firms with a higher market share, and firms located closer to economic centers. Additional tests indicate that site visits represent selective access events, not selective disclosure events. Overall, our study contributes to the literature by presenting the first systematic evidence on the information role of corporate site visits.-
dc.languageengen_US
dc.publisherChinese Accounting Professors' Association of North America (CAPANA).-
dc.relation.ispartofAnnual Research Conference of Chinese Accounting Professors' Association of North America (CAPANA)en_US
dc.rightsCreative Commons: Attribution 3.0 Hong Kong License-
dc.subjectcorporate site visits-
dc.subjectselective access-
dc.subjectselective disclosure-
dc.subjectinformation acquisition-
dc.titleAre Investors’ Corporate Site Visits Informative?en_US
dc.typeConference_Paperen_US
dc.identifier.emailDu, F: feidu@hku.hken_US
dc.identifier.emailWang, X: wangxacy@hku.hken_US
dc.identifier.authorityDu, F=rp01508en_US
dc.identifier.authorityWang, X=rp01555en_US
dc.description.naturepublished_or_final_version-
dc.identifier.hkuros217554en_US

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