Publication Type
Journal Article
Version
submittedVersion
Publication Date
3-2019
Abstract
We examine the stock price impact of corporate site visits using a unique dataset 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 non-visiting funds. Overall, our study contributes to the literature by presenting evidence on the stock price impact of corporate site visits, the variation of the impact, and the usefulness of site visits for visitors’ investment decisions.
Keywords
corporate site visits, stock price impact, information acquisition
Discipline
Accounting | Corporate Finance
Research Areas
Corporate Reporting and Disclosure
Publication
Contemporary Accounting Research
Volume
36
Issue
1
First Page
359
Last Page
388
ISSN
0823-9150
Identifier
10.1111/1911-3846.12417
Publisher
Canadian Academic Accounting Association
Citation
CHENG, Qiang; DU, Fei; WANG, Brian Yutao; and WANG, Xin.
Do corporate site visits impact stock prices?. (2019). Contemporary Accounting Research. 36, (1), 359-388.
Available at: https://ink.library.smu.edu.sg/soa_research/1632
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1111/1911-3846.12417