Investor Relations for the Rest of Us: Engaging with Retail Investors

1 Pages Posted: 17 Sep 2024

See all articles by Jin Kyung Choi

Jin Kyung Choi

City University of Hong Kong (CityU)

Allen H. Huang

Hong Kong University of Science and Technology - Department of Accounting

Lu Qiu

Hong Kong University of Science & Technology (HKUST)

Yue Zheng

Hong Kong University of Science & Technology (HKUST)

Date Written: August 01, 2024

Abstract

Using a Fintech platform (SAY) that crowdsources questions from retail investors for earnings calls, we explore retail investors' information demand and investigate whether responding to such demand increases retail interest. Through topic modeling analysis, we find that retail investors have different information needs from analysts. In particular, retail investors have greater enquiries on dividend policy, stakeholders, and product and technology, while analysts focus on financial performance and macroeconomic condition. Managers address retail investors' information demand by answering top-voted questions and adjusting their earnings call presentations. Retail interest, measured by the intensity of Reddit posts, rises post-SAY adoption, especially when firms are more responsive to retail queries. Overall, our study suggests that understanding and responding to retail investors' unique information demand serve as effective investor relations activities that enhance interest from retail investors. 

Suggested Citation

Choi, Jin Kyung and Huang, Allen H. and Qiu, Lu and Zheng, Yue, Investor Relations for the Rest of Us: Engaging with Retail Investors (August 01, 2024). Available at SSRN: https://ssrn.com/abstract=4927167 or http://dx.doi.org/10.2139/ssrn.4927167

Jin Kyung Choi (Contact Author)

City University of Hong Kong (CityU) ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong

Allen H. Huang

Hong Kong University of Science and Technology - Department of Accounting ( email )

LSK Business School Building
HKUST
Clear Water Bay, Kowloon
Hong Kong

HOME PAGE: http://www.AllenHuang.org

Lu Qiu

Hong Kong University of Science & Technology (HKUST) ( email )

Yue Zheng

Hong Kong University of Science & Technology (HKUST) ( email )

Clearwater Bay
Kowloon, 999999
Hong Kong

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