Conference Presentations and the Disclosure Milieu
Brian J. Bushee
University of Pennsylvania - The Wharton School
Michael J. Jung
New York University - Leonard N. Stern School of Business; New York University (NYU) - Department of Accounting, Taxation & Business Law
Gregory S. Miller
University of Michigan - Ross School of Business
August 10, 2011
Journal of Accounting Research, Forthcoming
Conference presentations differ from other voluntary disclosures in that the audience for the disclosure is co-located with managers in a well-defined physical and social setting, or “disclosure milieu.” The milieu affects the degree to which conference participants can update their prior beliefs about the firm with information signals obtained through interactions with management and other informed participants. While the average abnormal stock return and volume reactions to presentations are positive, there is a great deal of cross-sectional variation as indicated by negative median reactions. We find that conference characteristics that determine the nature of the audience and its interactions, such as sponsor, location, size, and industry-focus, are significantly associated with the market reaction, consistent with the disclosure milieu explaining the cross-sectional variation in the information content of the presentation. We also find that conference characteristics explain changes in subsequent analyst and institutional investor following, consistent with the disclosure milieu creating differences in access to management by potential new investors and analysts.
Number of Pages in PDF File: 44
Keywords: Voluntary Disclosure, Conference Presentations, Managerial Presentations, Investor Conferences, Brokerage Conferences
JEL Classification: M41Accepted Paper Series
Date posted: September 29, 2009 ; Last revised: November 15, 2011
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