Do Corporate Site Visits Impact Stock Prices?

69 Pages Posted: 29 Sep 2017

See all articles by Qiang Cheng

Qiang Cheng

Singapore Management University

Fei Du

University of Illinois at Urbana-Champaign - Department of Accountancy

Yutao Wang

Central University of Finance and Economics (CUFE)

Xin Wang

The University of Hong Kong

Multiple version iconThere are 2 versions of this paper

Date Written: September 27, 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, this study contributes to the literature by providing evidence that site visits are important venues for investors to collect information about firms and make informed trades.

Keywords: Corporate site visits; stock price impact; information acquisition

JEL Classification: D80, G14, M41

Suggested Citation

Cheng, Qiang and Du, Fei and Wang, Yutao and Wang, Xin, Do Corporate Site Visits Impact Stock Prices? (September 27, 2017). Contemporary Accounting Research, Forthcoming, Singapore Management University School of Accountancy Research Paper No. 2017-67, Available at SSRN: https://ssrn.com/abstract=3044130

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

Yutao Wang

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

39 South College Road
Beijing, Beijing 100081
China

Xin Wang

The University of Hong Kong ( email )

1215 K.K.Leung Building
Hong Kong
Hong Kong

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