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Investor Conferences, Stock Liquidity, and Firm Performance

Paul Brockman

Lehigh University

Musa Subasi

University of Maryland-College Park

Cihan Uzmanoglu

Binghamton University-SUNY

February 1, 2015

We examine potential costs and benefits for firms that participate in investor conferences. We find that firms participating in conferences experience a 1.4% to 2.8% increase in stock liquidity compared to matched, non-conference-participating firms. This improvement in liquidity is larger for firms with low pre-conference visibility, decreases with the number of conference presentations in a quarter, and varies predictably with conference characteristics that affect the ability of investors to update their priors about the firm. In contrast to the positive impact on liquidity, we find that conference activity has a negative impact on firms’ operating performance. Nevertheless, we show that conference activity increases firm value because it reduces liquidity risk and the cost of equity capital.

Number of Pages in PDF File: 69

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

JEL Classification: G10, G14

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Date posted: January 31, 2011 ; Last revised: February 7, 2015

Suggested Citation

Brockman, Paul and Subasi, Musa and Uzmanoglu, Cihan, Investor Conferences, Stock Liquidity, and Firm Performance (February 1, 2015). Available at SSRN: https://ssrn.com/abstract=1751654 or http://dx.doi.org/10.2139/ssrn.1751654

Contact Information

Paul Brockman
Lehigh University ( email )
Bethlehem, PA 18015
United States
Musa Subasi
University of Maryland-College Park ( email )
4332N Van Munching Hall
Robert H. Smith School of Business
College Park, MD 20742
United States
3013141055 (Phone)
Cihan Uzmanoglu (Contact Author)
Binghamton University-SUNY ( email )
Binghamton, NY 13902-6001
United States
607 777 66 38 (Phone)
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References:  18
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