Do Corporate Site Visits Impact Stock Prices?

Qiang Cheng, Fei Du, Brian Yutao Wang, Xin Wang

Research output: Contribution to journalArticle

Abstract

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.

Original languageEnglish (US)
Pages (from-to)359-388
Number of pages30
JournalContemporary Accounting Research
Volume36
Issue number1
DOIs
StatePublished - Mar 1 2019

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Stock prices
Market reaction
Investors
Fundholding
Price impact
Finance
Stock returns
Information environment
China
Fund managers
Mutual funds
Manufacturing firms

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics

Cite this

Do Corporate Site Visits Impact Stock Prices? / Cheng, Qiang; Du, Fei; Wang, Brian Yutao; Wang, Xin.

In: Contemporary Accounting Research, Vol. 36, No. 1, 01.03.2019, p. 359-388.

Research output: Contribution to journalArticle

Cheng, Qiang ; Du, Fei ; Wang, Brian Yutao ; Wang, Xin. / Do Corporate Site Visits Impact Stock Prices?. In: Contemporary Accounting Research. 2019 ; Vol. 36, No. 1. pp. 359-388.
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