Open Versus Closed Conference Calls: The Determinants and Effects of Broadening Access to Disclosure
46 Pages Posted: 11 Jan 2001
Date Written: February 2002
Recent advances in information technology allow firms to provide broader access to their disclosures. We examine the determinants and effects of the decision to provide unlimited real-time access to conference calls (i.e., "open"conference calls). Our evidence suggests that the decision to provide open calls is associated with the composition of a firm's investor base and, to some degree, the complexity of its financial information. We also find that open calls are associated with a greater increase in small trades (consistent with individuals trading on information released during the call) and higher price volatility during the call period.
Key Words: Conference calls, corporate disclosure, selective disclosure, price volatility, institutional investors
JEL Classification: M41, M44, G12, G14, G29, G39, K22
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