TY - JOUR
T1 - Do Corporate Site Visits Impact Stock Prices?
AU - Cheng, Qiang
AU - Du, Fei
AU - Wang, Brian Yutao
AU - Wang, Xin
N1 - Publisher Copyright:
© CAAA
PY - 2019/3/1
Y1 - 2019/3/1
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=85058016915&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85058016915&partnerID=8YFLogxK
U2 - 10.1111/1911-3846.12417
DO - 10.1111/1911-3846.12417
M3 - Article
AN - SCOPUS:85058016915
SN - 0823-9150
VL - 36
SP - 359
EP - 388
JO - Contemporary Accounting Research
JF - Contemporary Accounting Research
IS - 1
ER -