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

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1111/1911-3846.12417

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