Open Versus Closed Conference Calls: The Determinants and Effects of Broadening Access to Disclosure
Posted: 16 Oct 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.
Keywords: conference calls, corporate disclosure, selective disclosure, price volatility, institutional investors
JEL Classification: M41, M44, G12, G14, G39, K22
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