Do Corporate Site Visits Impact Stock Prices?

69 Pages Posted: 11 Aug 2013 Last revised: 22 May 2017

See all articles by Qiang Cheng

Qiang Cheng

Singapore Management University

Fei Du

University of Illinois at Urbana-Champaign - Department of Accountancy

Xin Wang

The University of Hong Kong

Yutao Wang

Central University of Finance and Economics (CUFE)

Multiple version iconThere are 2 versions of this paper

Date Written: May 20, 2017

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

JEL Classification: D80, G14, M41

Suggested Citation

Cheng, Qiang and Du, Fei and Wang, Xin and Wang, Yutao, Do Corporate Site Visits Impact Stock Prices? (May 20, 2017). Singapore Management University School of Accountancy Research Paper No. 2014-12. Available at SSRN: https://ssrn.com/abstract=2308486 or http://dx.doi.org/10.2139/ssrn.2308486

Qiang Cheng (Contact Author)

Singapore Management University ( email )

60 Stamford Road
Singapore, 178900
Singapore

Fei Du

University of Illinois at Urbana-Champaign - Department of Accountancy ( email )

1206 South Sixth Street
Champaign, IL 61820
United States

Xin Wang

The University of Hong Kong ( email )

1215 K.K.Leung Building
Hong Kong
Hong Kong

Yutao Wang

Central University of Finance and Economics (CUFE) ( email )

39 South College Road
Beijing, Beijing 100081
China

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