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Learning from outsiders: Do managers benefit from communication with market participants?

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Listed:
  • Kong, Dongmin
  • Liu, Shasha
  • Wang, Yanan

Abstract

This paper investigates whether managers learn from communication with professional market participants using a unique dataset of analyst visits to listed firms in China. We find that managerial ability is significantly enhanced by communicating with outsiders. To identify causality, instrument variable and matching method are introduced. Our findings provide significant implications on the role of the information learning from outsiders to firm managers.

Suggested Citation

  • Kong, Dongmin & Liu, Shasha & Wang, Yanan, 2018. "Learning from outsiders: Do managers benefit from communication with market participants?," Finance Research Letters, Elsevier, vol. 26(C), pages 192-197.
    • Handle: RePEc:eee:finlet:v:26:y:2018:i:c:p:192-197
    DOI: 10.1016/j.frl.2018.01.007
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    References listed on IDEAS

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    Cited by:

    1. Ge, Qian-Qian & Liu, Xi-Hua & Zhang, Yu-Chen & Liu, Shi-Qi, 2023. "Has China’s Free Trade Zone policy promoted the upgrading of service industry structure?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1171-1186.
    2. Lai, Shaojie & Li, Xiaorong & Liu, Shiang & Wang, Qing Sophie, 2022. "Institutional investors’ site visits and corporate employment decision-making," Journal of Contemporary Accounting and Economics, Elsevier, vol. 18(3).
    3. Chen, Yu & Zhang, Yujiao & Wang, Mingshan, 2024. "Green credit, financial regulation and corporate green innovation: Evidence from China," Finance Research Letters, Elsevier, vol. 59(C).

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    More about this item

    Keywords

    Learning; Communications; Outsiders; Managerial ability; China;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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