Do Corporate Site Visits Impact Stock Prices?

• 成果类型: Article
• 署名作者: Cheng, Qiang; Du, Fei; Wang, Brian Yutao; Wang, Xin
• 署名单位: Singapore Management University; University of Illinois System; University of Illinois Urbana-Champaign; Renmin University of China; University of Hong Kong
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1111/1911-3846.12417
• 发表日期: 2019
• 页码: 359-388
• 关键词: cross-section; recommendations; management; access

摘要

We examine the stock price impact of corporate site visits using a unique data set of site visits to listed firms in China. Our main findings are as follows. First, the market reaction around corporate site visits is statistically and economically significant and is stronger for group visits, visits conducted by mutual fund managers, visits covering accounting and finance topics, visits to firms with poor information environments, and visits to manufacturing firms. Second, the stock returns around site visits are positively associated with firms' future performance. Third, the changes in visiting funds' holdings are more predictive of firms' future performance than those of nonvisiting funds. Overall, this study contributes to the literature by providing evidence that site visits are important venues for investors to collect information about firms and make informed trades.