Investor Conferences, Firm Visibility, and Stock Liquidity

39 Pages Posted: 10 Oct 2017

See all articles by Paul Brockman

Paul Brockman

Lehigh University - College of Business

Musa Subasi

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

Cihan Uzmanoglu

Binghamton University, The State University of New York

Date Written: November 2017

Abstract

We examine the influence of investor conferences on firms’ stock liquidity. We find that firms participating in conferences experience a 1.4% to 2.8% increase in stock liquidity compared to nonconference firms. Consistent with investor conferences improving firm visibility, the increase in liquidity is larger for firms with low pre‐conference visibility and varies predictably with conference characteristics that affect the ability of investors to revise their beliefs about the firm. However, for firms with a large investor base and high visibility, conference participation is associated with a decline in stock liquidity, consistent with investor conferences exacerbating the information asymmetry among investors.

Keywords: investor conferences, firm visibility, stock liquidity

JEL Classification: G14, G23, G31

Suggested Citation

Brockman, Paul and Subasi, Musa and Uzmanoglu, Cihan, Investor Conferences, Firm Visibility, and Stock Liquidity (November 2017). Financial Review, Vol. 52, Issue 4, pp. 661-699, 2017. Available at SSRN: https://ssrn.com/abstract=3050213 or http://dx.doi.org/10.1111/fire.12136

Paul Brockman (Contact Author)

Lehigh University - College of Business ( email )

Bethlehem, PA 18015
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)

Cihan Uzmanoglu

Binghamton University, The State University of New York ( email )

Binghamton, NY 13902-6001
United States
607 777 66 38 (Phone)

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