Corporate jets and private meetings with investors

Brian J. Bushee, Joseph Gerakos and Lian Fen Lee

Journal of Accounting and Economics, 2018, vol. 65, issue 2, 358-379

Abstract: 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 (search for similar items in EconPapers)
JEL-codes: G14 K22 M48 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (39)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaecon:v:65:y:2018:i:2:p:358-379

DOI: 10.1016/j.jacceco.2018.01.005

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