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Broker-hosted investor conferences

Author

Listed:
  • Green, T. Clifton
  • Jame, Russell
  • Markov, Stanimir
  • Subasi, Musa

Abstract

We examine the determinants and consequences of broker-hosted investor conferences. We find the number of brokers hosting a firm at conferences is positively related to institutional ownership and intangible assets, consistent with greater client demand for management access among hard-to-value firms. Younger firms and those that issue equity in the future attend more conferences, suggesting firms view conference participation as a means to enhance investor recognition. Hosting brokers are rewarded with increased commission revenue. Commission share increases by 0.61% during the conference week, with larger increases following more informative conference disclosures. Firms also benefit from conference participation. In the subsequent year, conference firms are followed by an additional 0.34 analysts, undergo a 6% reduction in bid-ask spread, and experience a 0.03 increase in Tobin׳s q.

Suggested Citation

  • Green, T. Clifton & Jame, Russell & Markov, Stanimir & Subasi, Musa, 2014. "Broker-hosted investor conferences," Journal of Accounting and Economics, Elsevier, vol. 58(1), pages 142-166.
    • Handle: RePEc:eee:jaecon:v:58:y:2014:i:1:p:142-166
    DOI: 10.1016/j.jacceco.2014.06.005
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    More about this item

    Keywords

    Investor conferences; Brokerage research; Institutional trading; Corporate disclosures; Investor relations;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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