Other Unpublished Work
What Are We Meeting For? The Consequences of Private Meetings with Investors
Executives of publicly-traded firms spend considerable time meeting privately with investors, despite regulation restricting their ability to convey material nonpublic information. Using a set of records of all one-on-one meetings between senior management and investors for a NYSE traded firm, we investigate which funds meet privately with management and the consequences of these interactions. We find that hedge funds, large block holders, geographically close investors, and investors with higher turnover meet more frequently with management. We also find that trades are more correlated among funds that meet with management and these trades better predict future performance. Overall, our results suggest that private meetings help some investors make more informed trading decisions.
Keywords: Decision Choices and Conditions;
Governing Rules, Regulations, and Reforms;
Business and Shareholder Relations;