Expert Network Calls

Fisher College of Business Working Paper No. 2022-03-013

Charles A Dice Center Working Paper No. 2022-13

48 Pages Posted: 28 Nov 2022 Last revised: 15 May 2023

See all articles by Sean Cao

Sean Cao

University of Maryland - Robert H. Smith School of Business

T. Clifton Green

Emory University - Department of Finance

Lijun (Gillian) Lei

University of North Carolina at Greensboro

Shaojun Zhang

The Ohio State University

Date Written: May 15, 2023

Abstract

Expert networks provide investors with in-depth discussions with subject matter experts. Expert call demand is higher for younger, technology-oriented firms and those with greater intangible assets, consistent with demand for information on hard-to-value firms. Expert calls are more (less) likely to emphasize technology and operational (financial) topics relative to earnings calls. We find that expert call volume is associated with hedge fund position changes and greater price efficiency. The relation is asymmetric, with call volume preceding hedge fund sales, greater short interest, and negative firm performance. The evidence suggests that expert networks help investors discern complicated bad news.

Keywords: Expert Networks, Price Efficiency, Hedge Funds, Informed Trading

JEL Classification: G11, G12, G14

Suggested Citation

Cao, Sean S. and Green, T. Clifton and Lei, Lijun and Zhang, Shaojun, Expert Network Calls (May 15, 2023). Fisher College of Business Working Paper No. 2022-03-013, Charles A Dice Center Working Paper No. 2022-13, Available at SSRN: https://ssrn.com/abstract=4280865 or http://dx.doi.org/10.2139/ssrn.4280865

Sean S. Cao

University of Maryland - Robert H. Smith School of Business ( email )

College Park, MD 20742-1815
United States

T. Clifton Green (Contact Author)

Emory University - Department of Finance ( email )

1300 Clifton Rd.
Atlanta, GA 30322-2710
United States
404-727-5167 (Phone)
404-727-5238 (Fax)

Lijun Lei

University of North Carolina at Greensboro ( email )

P.O.Box 26170
Greensboro, NC 27412
United States

Shaojun Zhang

The Ohio State University

2100 Neil Avenue
Columbus, OH 43210-1144
United States

HOME PAGE: http://sites.google.com/view/zhangshaojun

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
452
Abstract Views
1,664
Rank
103,242
PlumX Metrics