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Corporate jets and private meetings with investors

Author

Listed:
  • Bushee, Brian J.
  • Gerakos, Joseph
  • Lee, Lian Fen

Abstract

We use corporate jet flight patterns to identify private meetings with investors that are ex ante unobservable to non-participants. Using approximately 400,000 flights, we proxy for private meetings with “roadshows,” defined as three-day windows that include flights to money centers and to non-money centers in which the firm has high institutional ownership. Roadshows exhibit greater abnormal stock reactions, analyst forecast activity, and absolute changes in local institutional ownership than other flight activity. We also find positive trading gains in firms with more complex information and infrequent private meetings, suggesting that roadshows provide participating investors an advantage over non-participating investors.

Suggested Citation

  • Bushee, Brian J. & Gerakos, Joseph & Lee, Lian Fen, 2018. "Corporate jets and private meetings with investors," Journal of Accounting and Economics, Elsevier, vol. 65(2), pages 358-379.
    • Handle: RePEc:eee:jaecon:v:65:y:2018:i:2:p:358-379
    DOI: 10.1016/j.jacceco.2018.01.005
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    References listed on IDEAS

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    More about this item

    Keywords

    Selective disclosure; Corporate jets; Institutional investors;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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