Do Managers learn from institutional investors through direct interactions?

• 成果类型: Article
• 署名作者: Zhang, Rachel Xi
• 署名单位: National University of Singapore
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2022.101554
• 发表日期: 2023
• 关键词: HEDGE FUND ACTIVISM; corporate governance; stock-prices; information transfers; private meetings; disclosure; mergers; trades

摘要

I examine whether corporate managers learn from institutional investors through direct interactions at investor conferences. I find that managers seek more direct interactions with institutional investors at conferences when they have a greater need for information about their firm's product markets and supply chains. This relation is stronger when managers expect investors to be knowledgeable. I also show that the information acquired from conference interactions is reflected in subsequent manager decisions. First, direct interactions help managers to extract information embedded in stock prices and later use it to make investments. Second, within the same firm and month, managers' personal stock trades immediately after attending a conference earn higher abnormal returns, consistent with direct interactions expanding their private information set. Overall, these findings suggest that managers can acquire decision-relevant information from direct interactions with institutional investors of their firm. (c) 2022 Elsevier B.V. All rights reserved.