Investor Conferences, Firm Visibility, and Stock Liquidity

The Financial Review, Vol. 52, Issue 4, pp. 661-699, 2017

64 Pages Posted: 6 Jul 2017 Last revised: 13 May 2020

See all articles by Paul Brockman

Paul Brockman

Lehigh University - College of Business

Musa Subasi

University of Maryland-College Park - Robert H. Smith School of Business

Cihan Uzmanoglu

Binghamton University, The State University of New York

Date Written: November 10, 2016

Abstract

We examine the influence of investor conferences on firms’ stock liquidity. We find that firms participating in conferences experience a 1.4% to 2.8% increase in stock liquidity compared to non-conference firms. Consistent with investor conferences improving firm visibility, the increase in liquidity is larger for firms with low pre-conference visibility and varies predictably with conference characteristics that affect the ability of investors to revise their beliefs about the firm. However, for firms with a large investor base and high visibility, conference participation is associated with a decline in stock liquidity, consistent with investor conferences exacerbating the information asymmetry among investors.

Keywords: Conference Presentations, Liquidity Risk, Cost of Equity Capital

JEL Classification: G10, G14, G23, G31

Suggested Citation

Brockman, Paul and Subasi, Musa and Uzmanoglu, Cihan, Investor Conferences, Firm Visibility, and Stock Liquidity (November 10, 2016). The Financial Review, Vol. 52, Issue 4, pp. 661-699, 2017, Available at SSRN: https://ssrn.com/abstract=1751654 or http://dx.doi.org/10.2139/ssrn.1751654

Paul Brockman

Lehigh University - College of Business ( email )

Bethlehem, PA 18015
United States

Musa Subasi

University of Maryland-College Park - Robert H. Smith School of Business ( email )

University of Maryland-College Park
4332N Van Munching Hall
College Park, MD 20742
United States
301-314-1055 (Phone)

Cihan Uzmanoglu (Contact Author)

Binghamton University, The State University of New York ( email )

Binghamton, NY 13902-6001
United States
607 777 66 38 (Phone)

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