Corporate Jets and Private Meetings with Investors

53 Pages Posted: 7 Feb 2018

See all articles by Brian J. Bushee

Brian J. Bushee

University of Pennsylvania - The Wharton School

Joseph Gerakos

Tuck School of Business at Dartmouth College

Lian Fen Lee

Boston College - Carroll School of Management

Date Written: January 29, 2018

Abstract

We use corporate jet flight patterns to identify private meetings with investors that are ex ante unobservable to non-participants. Using approximately 400,000 flights, we proxy for private meetings with "roadshows," defined as three-day windows that include flights to money centers and to non-money centers in which the firm has high institutional ownership. Roadshows exhibit greater abnormal stock reactions, analyst forecast activity, and absolute changes in local institutional ownership than other flight activity. We also find positive trading gains in firms with more complex information and infrequent private meetings, suggesting that roadshows provide participating investors an advantage over non-participating investors.

Keywords: Selective disclosure, Corporate jets, Institutional investors

JEL Classification: G14, K22, M48

Suggested Citation

Bushee, Brian J. and Gerakos, Joseph and Lee, Lian Fen, Corporate Jets and Private Meetings with Investors (January 29, 2018). Journal of Accounting & Economics, Forthcoming, Tuck School of Business Working Paper No. 3113941, Available at SSRN: https://ssrn.com/abstract=3113941

Brian J. Bushee

University of Pennsylvania - The Wharton School ( email )

3641 Locust Walk
Philadelphia, PA 19104-6365
United States
215-898-4872 (Phone)
215-573-2054 (Fax)

Joseph Gerakos

Tuck School of Business at Dartmouth College ( email )

Hanover, NH 03755
United States

Lian Fen Lee (Contact Author)

Boston College - Carroll School of Management ( email )

140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
274
Abstract Views
2,173
rank
126,415
PlumX Metrics