Muddy the waters to conceal information? Evidence from firms' inconsistent answers during Q&As

Lini Duan, Lingyi Li, Kyung-Hye Park and Di Wu

Finance Research Letters, 2023, vol. 51, issue C

Abstract: This paper investigates the differential responses by managers to institutional investors during Q&As at site visits and to retail investors during online Q&As. We find that the gap in firms’ responses to different types of investors increases the potential for comment letters to be sent to firms and leads to higher information asymmetry, consistent with the notion that this gap implies a lower quality of information disclosure. Additional tests show that managers are more likely to post differential responses when questions form retail investors have a more negative orientation, and the differential responses lead to high stock price synchronicity.

Keywords: Information manipulation; Institutional investors; Investor relations; Retail investors (search for similar items in EconPapers)
JEL-codes: G10 G14 M41 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:51:y:2023:i:c:s154461232200592x

DOI: 10.1016/j.frl.2022.103415

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