Broker-Hosted Investor Conferences

59 Pages Posted: 19 Aug 2011 Last revised: 24 Jun 2014

T. Clifton Green

Emory University - Goizueta Business School

Russell Jame

University of Kentucky

Stanimir Markov

Southern Methodist University (SMU) - Edwin L. Cox School of Business

Musa Subasi

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

Date Written: May 30, 2014

Abstract

We examine the determinants and consequences of broker-hosted investor conferences. We find the number of brokers hosting a firm at conferences is positively related to institutional ownership and intangible assets, consistent with greater client demand for management access among hard-to-value firms. Younger firms and those that issue equity in the future attend more conferences, suggesting firms view conference participation as a means to enhance investor recognition. Hosting brokers are rewarded with increased commission revenue. Commission share increases by 0.61% during the conference week, with larger increases following more informative conference disclosures. Firms also benefit from conference participation. In the subsequent year, conference firms are followed by an additional 0.34 analysts, undergo a 6% reduction in bid-ask spread, and experience a 0.03 increase in Tobin’s Q.

Keywords: Analyst Research, Institutional Trading, Brokerage Commissions

JEL Classification: G14

Suggested Citation

Green, T. Clifton and Jame, Russell and Markov, Stanimir and Subasi, Musa, Broker-Hosted Investor Conferences (May 30, 2014). Journal of Accounting & Economics (JAE), Forthcoming. Available at SSRN: https://ssrn.com/abstract=1911959 or http://dx.doi.org/10.2139/ssrn.1911959

T. Clifton Green (Contact Author)

Emory University - Goizueta Business School ( email )

1300 Clifton Rd.
Atlanta, GA 30322-2710
United States
404-727-5167 (Phone)
404-727-5238 (Fax)

Russell Jame

University of Kentucky ( email )

Gatton College of Businesss & Economics
Lexington, KY 40506
United States

HOME PAGE: http://russelljame.com

Stanimir Markov

Southern Methodist University (SMU) - Edwin L. Cox School of Business ( email )

P.O. Box 750333
Dallas, TX 75275-0333
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)

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