Inside the black box of private in-house meetings

• 成果类型: Article
• 署名作者: Bowen, Robert M.; Dutta, Shantanu; Tang, Songlian; Zhu, Pengcheng
• 署名单位: University of San Diego; University of Washington; University of Washington Seattle; University of Ottawa; East China University of Science & Technology
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1007/s11142-017-9433-z
• 发表日期: 2018
• 页码: 487-527
• 关键词: information; management; analysts; CHINA

摘要

We examine information content and related insider trading around private in-house meetings between corporate insiders and investors and analysts. We use a hand-collected dataset of approximately 17,000 private meeting summary reports of Shenzhen Stock Exchange firms over 2012-2014. We find that these private meetings are informative and corporate insiders conducted over one-half of their stock sales (totaling $8.7 billion) around these meetings. Some insiders time their transactions and earn substantial gains by selling (purchasing) relatively more shares before bad (good) news disclosures while postponing selling (purchasing) when good (bad) news is to be disclosed in the meeting. Finally, we conduct a content analysis of published meeting summary reports and find that the tone in these reports is associated with stock market reactions around (1) private meetings themselves, (2) subsequent public release of private meeting details, (3) subsequent earnings announcements and (4) future stock performance.