 Do Managers learn from institutional investors through direct interactions?Rachel Xi Zhang Journal of Accounting and Economics, 2023, vol. 75, issue 2 Abstract: I examine whether corporate managers learn from institutional investors through direct interactions at investor conferences. I find that managers seek more direct interactions with institutional investors at conferences when they have a greater need for information about their firm's product markets and supply chains. This relation is stronger when managers expect investors to be knowledgeable. I also show that the information acquired from conference interactions is reflected in subsequent manager decisions. First, direct interactions help managers to extract information embedded in stock prices and later use it to make investments. Second, within the same firm and month, managers' personal stock trades immediately after attending a conference earn higher abnormal returns, consistent with direct interactions expanding their private information set. Overall, these findings suggest that managers can acquire decision-relevant information from direct interactions with institutional investors of their firm. Keywords: Institutional investors; Investor conferences; Learning from prices; Mergers and acquisitions; Insider trading (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jaecon:v:75:y:2023:i:2:s0165410122000775 DOI: 10.1016/j.jacceco.2022.101554 Access Statistics for this article Journal of Accounting and Economics is currently edited by J. L. Zimmerman, S. P. Kothari, T. Z. Lys and R. L. Watts More articles in Journal of Accounting and Economics from Elsevier |
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