Corporate Jets and Private Meetings with Investors
53 Pages Posted: 7 Feb 2018
Date Written: January 29, 2018
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: Suggested Citation