IDEAS home Printed from https://ideas.repec.org/a/eee/pacfin/v94y2025ics0927538x25002410.html

Corporate site visits disclosure and investment-q sensitivity

Author

Listed:
  • Wang, Le
  • Tian, Gaoliang
  • Chen, Xiaoyan

Abstract

We examine whether the mandatory disclosure of corporate site visits (CSV) increases the real efficiency of the stock market, assisting the investment decision-making in the real side of the economy. We find that the disclosure of CSV information increases the sensitivity of corporate investments to stock price, i.e., investment-q sensitivity. This effect is especially pronounced in firms characterized by lower levels of informed trading, less private information embedded in stock prices, limited analyst coverage, greater product market uncertainty, and tighter financial constraints. These findings provide evidence that disclosing private information from investor-manager interactions enhances real efficiency in the market.

Suggested Citation

  • Wang, Le & Tian, Gaoliang & Chen, Xiaoyan, 2025. "Corporate site visits disclosure and investment-q sensitivity," Pacific-Basin Finance Journal, Elsevier, vol. 94(C).
    • Handle: RePEc:eee:pacfin:v:94:y:2025:i:c:s0927538x25002410
    DOI: 10.1016/j.pacfin.2025.102904
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0927538X25002410
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.pacfin.2025.102904?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Edmans, Alex & Jayaraman, Sudarshan & Schneemeier, Jan, 2017. "The source of information in prices and investment-price sensitivity," Journal of Financial Economics, Elsevier, vol. 126(1), pages 74-96.
    2. Qiang Cheng & Fei Du & Brian Yutao Wang & Xin Wang, 2019. "Do Corporate Site Visits Impact Stock Prices?," Contemporary Accounting Research, John Wiley & Sons, vol. 36(1), pages 359-388, March.
    3. Dye, Ra, 1985. "Disclosure Of Nonproprietary Information," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 23(1), pages 123-145.
    4. David Easley & Soeren Hvidkjaer & Maureen O'Hara, 2002. "Is Information Risk a Determinant of Asset Returns?," Journal of Finance, American Finance Association, vol. 57(5), pages 2185-2221, October.
    5. Fu, Renhui & Kraft, Arthur & Zhang, Huai, 2012. "Financial reporting frequency, information asymmetry, and the cost of equity," Journal of Accounting and Economics, Elsevier, vol. 54(2), pages 132-149.
    6. Bing Han & Dongmin Kong & Shasha Liu, 2018. "Do Analysts Gain an Informational Advantage by Visiting Listed Companies?," Contemporary Accounting Research, John Wiley & Sons, vol. 35(4), pages 1843-1867, December.
    7. Thierry Foucault & Laurent Frésard, 2012. "Cross-Listing, Investment Sensitivity to Stock Price, and the Learning Hypothesis," The Review of Financial Studies, Society for Financial Studies, vol. 25(11), pages 3305-3350.
    8. Malmendier, Ulrike & Shanthikumar, Devin, 2007. "Are small investors naive about incentives?," Journal of Financial Economics, Elsevier, vol. 85(2), pages 457-489, August.
    9. Asquith, Paul & Pathak, Parag A. & Ritter, Jay R., 2005. "Short interest, institutional ownership, and stock returns," Journal of Financial Economics, Elsevier, vol. 78(2), pages 243-276, November.
    10. Brown, Stephen & Hillegeist, Stephen A. & Lo, Kin, 2004. "Conference calls and information asymmetry," Journal of Accounting and Economics, Elsevier, vol. 37(3), pages 343-366, September.
    11. Robert M. Bushman & Joseph D. Piotroski & Abbie J. Smith, 2005. "Insider Trading Restrictions and Analysts' Incentives to Follow Firms," Journal of Finance, American Finance Association, vol. 60(1), pages 35-66, February.
    12. Malcolm Baker & Jeremy C. Stein & Jeffrey Wurgler, 2003. "When Does the Market Matter? Stock Prices and the Investment of Equity-Dependent Firms," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(3), pages 969-1005.
    13. Chen, Xia & Cheng, Qiang & Lo, Kin, 2010. "On the relationship between analyst reports and corporate disclosures: Exploring the roles of information discovery and interpretation," Journal of Accounting and Economics, Elsevier, vol. 49(3), pages 206-226, April.
    14. Qiang Cheng & Fei Du & Xin Wang & Yutao Wang, 2016. "Seeing is believing: analysts’ corporate site visits," Review of Accounting Studies, Springer, vol. 21(4), pages 1245-1286, December.
    15. Kathleen Weiss Hanley, 2010. "The Information Content of IPO Prospectuses," The Review of Financial Studies, Society for Financial Studies, vol. 23(7), pages 2821-2864, July.
    16. Itay Goldstein, 2023. "Information in Financial Markets and Its Real Effects," Review of Finance, European Finance Association, vol. 27(1), pages 1-32.
    17. Guo, Bing & Pérez-Castrillo, David & Toldrà-Simats, Anna, 2019. "Firms’ innovation strategy under the shadow of analyst coverage," Journal of Financial Economics, Elsevier, vol. 131(2), pages 456-483.
    18. Bhushan, Ravi, 1989. "Collection of information about publicly traded firms : Theory and evidence," Journal of Accounting and Economics, Elsevier, vol. 11(2-3), pages 183-206, July.
    19. Beyer, Anne & Cohen, Daniel A. & Lys, Thomas Z. & Walther, Beverly R., 2010. "The financial reporting environment: Review of the recent literature," Journal of Accounting and Economics, Elsevier, vol. 50(2-3), pages 296-343, December.
    20. Sudarshan Jayaraman & Joanna Shuang Wu, 2019. "Is Silence Golden? Real Effects of Mandatory Disclosure," The Review of Financial Studies, Society for Financial Studies, vol. 32(6), pages 2225-2259.
    21. Goldstein, Itay & Yang, Liyan, 2019. "Good disclosure, bad disclosure," Journal of Financial Economics, Elsevier, vol. 131(1), pages 118-138.
    22. Eugene Soltes, 2014. "Private Interaction Between Firm Management and Sell‐Side Analysts," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 52(1), pages 245-272, March.
    23. Yuanzhi Luo, 2005. "Do Insiders Learn from Outsiders? Evidence from Mergers and Acquisitions," Journal of Finance, American Finance Association, vol. 60(4), pages 1951-1982, August.
    24. Qi Chen & Itay Goldstein & Wei Jiang, 2007. "Price Informativeness and Investment Sensitivity to Stock Price," The Review of Financial Studies, Society for Financial Studies, vol. 20(3), pages 619-650.
    25. Kyle, Albert S, 1985. "Continuous Auctions and Insider Trading," Econometrica, Econometric Society, vol. 53(6), pages 1315-1335, November.
    26. Goldstein, Itay & Ozdenoren, Emre & Yuan, Kathy, 2013. "Trading frenzies and their impact on real investment," Journal of Financial Economics, Elsevier, vol. 109(2), pages 566-582.
    27. Philip Bond & Alex Edmans & Itay Goldstein, 2012. "The Real Effects of Financial Markets," Annual Review of Financial Economics, Annual Reviews, vol. 4(1), pages 339-360, October.
    28. Grossman, Sanford J & Stiglitz, Joseph E, 1980. "On the Impossibility of Informationally Efficient Markets," American Economic Review, American Economic Association, vol. 70(3), pages 393-408, June.
    29. Alex Edmans & Itay Goldstein & Wei Jiang, 2012. "The Real Effects of Financial Markets: The Impact of Prices on Takeovers," Journal of Finance, American Finance Association, vol. 67(3), pages 933-971, June.
    30. Hong, Xin & Zhuang, Zhuang & Kang, Di & Wang, Zhibin, 2019. "Do corporate site visits impact hedge fund performance?," Pacific-Basin Finance Journal, Elsevier, vol. 56(C), pages 113-128.
    31. David Solomon & Eugene Soltes, 2015. "What Are We Meeting For? The Consequences of Private Meetings with Investors," Journal of Law and Economics, University of Chicago Press, vol. 58(2), pages 325-355.
    32. Charles J. Hadlock & Joshua R. Pierce, 2010. "New Evidence on Measuring Financial Constraints: Moving Beyond the KZ Index," The Review of Financial Studies, Society for Financial Studies, vol. 23(5), pages 1909-1940.
    33. Qi Chen & Wei Jiang, 2006. "Analysts' Weighting of Private and Public Information," The Review of Financial Studies, Society for Financial Studies, vol. 19(1), pages 319-355.
    34. Amy P. Hutton & Lian Fen Lee & Susan Z. Shu, 2012. "Do Managers Always Know Better? The Relative Accuracy of Management and Analyst Forecasts," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 50(5), pages 1217-1244, December.
    35. Wagenhofer, Alfred, 1990. "Voluntary disclosure with a strategic opponent," Journal of Accounting and Economics, Elsevier, vol. 12(4), pages 341-363, March.
    36. Yangyang Chen & Jeffrey Ng & Xin Yang, 2021. "Talk Less, Learn More: Strategic Disclosure in Response to Managerial Learning from the Options Market," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 59(5), pages 1609-1649, December.
    37. Nisan Langberg & K. Sivaramakrishnan, 2010. "Voluntary Disclosures and Analyst Feedback," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 48(3), pages 603-646, June.
    38. Harrison Hong & Terence Lim & Jeremy C. Stein, 2000. "Bad News Travels Slowly: Size, Analyst Coverage, and the Profitability of Momentum Strategies," Journal of Finance, American Finance Association, vol. 55(1), pages 265-295, February.
    39. Healy, Paul M. & Palepu, Krishna G., 2001. "Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 405-440, September.
    40. McNichols, Maureen & Trueman, Brett, 1994. "Public disclosure, private information collection, and short-term trading," Journal of Accounting and Economics, Elsevier, vol. 17(1-2), pages 69-94, January.
    41. Allen, Arthur & Francis, Bill B. & Wu, Qiang & Zhao, Yijiang, 2016. "Analyst coverage and corporate tax aggressiveness," Journal of Banking & Finance, Elsevier, vol. 73(C), pages 84-98.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yang, Ruohan & Su, Kun, 2025. "Attention centrality and information efficiency," Economics Letters, Elsevier, vol. 254(C).
    2. Wu, Kai & Zhang, Yue & Li, Donghui, 2026. "Onsite oversight: Institutional site visits and stock return volatility," Research in International Business and Finance, Elsevier, vol. 81(C).
    3. Xiang, Youtao & Borjigin, Sumuya, 2025. "Network centrality and market information efficiency: Evidence from corporate site visits in China," International Review of Economics & Finance, Elsevier, vol. 103(C).
    4. Yang, Jinyu & Dong, Dayong & Liang, Chao, 2025. "Sequential questioning and structured responses: Enhancing the information effectiveness of corporate site visits," International Review of Financial Analysis, Elsevier, vol. 106(C).
    5. Li, Haolin & Cheng, Sirui & Hua, Xiuping & Wang, Yong, 2025. "The mitigating effects of blockchain adoption on supply chain financing disruptions under crises: Evidence from China," China Economic Review, Elsevier, vol. 94(PA).
    6. Chai, Daniel & Chou, Hsin-I & Geng, Xin & Zhao, Jing, 2026. "Beyond compliance: Independent director and investment efficiency in China's central state-owned enterprises," International Review of Economics & Finance, Elsevier, vol. 105(C).
    7. Wang, Yanyan & Li, Chuntao, 2025. "In person interaction to build trust: Evidence from supply chain financing," Research in International Business and Finance, Elsevier, vol. 80(C).
    8. Lu, Zhenye, 2025. "The digital imprint: The impact of executives' digital experience on green innovation decoupling," Finance Research Letters, Elsevier, vol. 86(PD).
    9. Yan, Sen & Ai, Kexin, 2026. "High-speed rail connectivity and supply chain information symmetry: insights from the bullwhip effect," Transport Policy, Elsevier, vol. 178(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Itay Goldstein, 2023. "Information in Financial Markets and Its Real Effects," Review of Finance, European Finance Association, vol. 27(1), pages 1-32.
    2. Xie, Lingmin & Chen, Zhian & Li, Donghui & Tan, Hongping, 2022. "Foreign analysts and managerial investment learning from stock markets," Journal of Multinational Financial Management, Elsevier, vol. 64(C).
    3. Luo, Runmei & Ye, Yong & Li, Manman & Li, Jingxin, 2025. "Pooling wisdom: The impact of investors' private information transmission on corporate investment efficiency," Emerging Markets Review, Elsevier, vol. 69(C).
    4. Ben-Nasr, Hamdi & Alshwer, Abdullah A., 2016. "Does stock price informativeness affect labor investment efficiency?," Journal of Corporate Finance, Elsevier, vol. 38(C), pages 249-271.
    5. Sani, Jalal & Shroff, Nemit & White, Hal, 2023. "Spillover effects of mandatory portfolio disclosures on corporate investment," Journal of Accounting and Economics, Elsevier, vol. 76(2).
    6. Charles G. McClure & Shawn X. Shi & Edward M. Watts, 2025. "Information acquisition costs and price informativeness: global evidence," Review of Accounting Studies, Springer, vol. 30(3), pages 2468-2507, September.
    7. Jan Schneemeier, 2023. "Voluntary Precision Disclosure and Endogenous Market Feedback," Management Science, INFORMS, vol. 69(9), pages 5618-5637, September.
    8. Shen, Jianghua & Xie, Lingmin, 2023. "Managerial ability and investment to price sensitivity," International Review of Economics & Finance, Elsevier, vol. 88(C), pages 928-941.
    9. Wenjing Ouyang & Samuel H. Szewczyk & Jeffrey Miles, 2025. "Female directors on the sensitivity of investment to growth opportunities," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 65(1), pages 713-752, March.
    10. Hu, Yi & Jin, Shuchang & Xiong, Zhitao, 2025. "Regulator as a minority shareholder: How does public-plus-private enforcement affect investment-to-price sensitivity?," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 1790-1815.
    11. Ye, Mao & Zheng, Miles Y. & Zhu, Wei, 2023. "The effect of tick size on managerial learning from stock prices," Journal of Accounting and Economics, Elsevier, vol. 75(1).
    12. Pinto, Jedson, 2023. "Mandatory disclosure and learning from external market participants: Evidence from the JOBS act," Journal of Accounting and Economics, Elsevier, vol. 75(1).
    13. Lyungmae Choi & Lucile Faurel & Stephen Hillegeist, 2025. "Do Proprietary Costs Deter Insider Trading?," Management Science, INFORMS, vol. 71(4), pages 3185-3215, April.
    14. Attig, Najah & El Ghoul, Sadok, 2021. "Flying under the radar: The real effects of anonymous trading," Journal of Corporate Finance, Elsevier, vol. 71(C).
    15. Suman Banerjee & Shiyang Huang & Vikram Nanda & Steven Chong Xiao, 2023. "Managerial Overconfidence and Market Feedback Effects," Management Science, INFORMS, vol. 69(12), pages 7285-7305, December.
    16. Itay Goldstein & Shijie Yang & Luo Zuo, 2020. "The Real Effects of Modern Information Technologies: Evidence from the EDGAR Implementation," NBER Working Papers 27529, National Bureau of Economic Research, Inc.
    17. Ryan P. McDonough, 2023. "Corporate communication and shareholder base retention: evidence from spin-offs," Review of Quantitative Finance and Accounting, Springer, vol. 60(4), pages 1283-1327, May.
    18. Zeyuan Huang & Yi Si & Gaoliang Tian & Chongwu Xia & Lei Zhang, 2024. "Learning ESG from stock prices: Evidence from a quasi‐natural experiment in China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(5), pages 4619-4646, December.
    19. Jianghua Shen & Lingmin Xie & Zhimin Xie, 2022. "The unintended consequence of financial statement comparability: evidence from managerial learning practices," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(3), pages 3073-3106, September.
    20. Hamdi Ben-Nasr & Abdullah Alshwer, 2015. "How Informed Stock Trading Can Affect Labor Investment Efficiency," Proceedings of Business and Management Conferences 2304077, International Institute of Social and Economic Sciences.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:pacfin:v:94:y:2025:i:c:s0927538x25002410. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/pacfin .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.