Broker-hosted investor conferences

• 成果类型: Article
• 署名作者: Green, T. Clifton; Jame, Russell; Markov, Stanimir; Subasi, Musa
• 署名单位: Emory University; University of Kentucky; Southern Methodist University; University of Missouri System; University of Missouri Columbia
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2014.06.005
• 发表日期: 2014
• 关键词: ANALYSTS EARNINGS FORECASTS; IMPLIED COST; coverage; MARKET; equilibrium; underwriter; management

摘要

We examine the determinants and consequences of broker-hosted investor conferences. We find the number of brokers hosting a firm at conferences is positively related to institutional ownership and intangible assets, consistent with greater client demand for management access among hard-to-value firms. Younger firms and those that issue equity in the future attend more conferences, suggesting firms view conference participation as a means to enhance investor recognition. Hosting brokers are rewarded with increased commission revenue. Commission share increases by 0.61% during the conference week, with larger increases following more informative conference disclosures. Firms also benefit from conference participation. In the subsequent year, conference firms are followed by an additional 034 analysts, undergo a 6% reduction in bid-ask spread, and experience a 0.03 increase in Tobin's q. (C) 2014 Elsevier B.V. All rights reserved.