Investor Conferences, Firm Visibility, and Stock Liquidity

Brockman, Paul; Subasi, Musa; Uzmanoglu, Cihan

doi:10.1111/fire.12136

Cited by 8 publications

(13 citation statements)

References 65 publications

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“…Recent studies have used a variety of proxies for organizational visibility such as institutional ownership, analyst coverage, and media coverage. The current study, consistent with the definition of organizational visibility, measures it using two variables: analyst coverage (NOA) and institutional ownership (INST) (e.g., Arbel et al, ; Baker et al, ; Brockman et al, ; Merton, ).…”

Section: Research Modelmentioning

confidence: 99%

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The impact of voluntary environmental disclosure on firm value: Does organizational visibility play a mediation role?

Hassan

2018

Bus Strat Env

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The current study investigates whether organizational visibility, that is the extent to which analysts follow, and institutions hold, a firm's stock (Baker, Powell, & Weaver, , p. 47), may explain the mechanism through which corporate environmental disclosure (CED) affects firm value. It explores whether CED impacts organizational visibility, and if so, whether firm value increases in organizational visibility, after accounting for greenhouse gas emissions intensity (GHG) as well as several firm‐level and country‐level controls. It utilizes a sample of S&P Global 1200 companies from 2010 to 2015. Using structural equation modeling to address the complex interrelationships between the variables of interest and employing Full Information Maximum Likelihood regression method, the findings show that organizational visibility does not play a statistically significant mediation role on the relationship between CED and firm value. However, organizational visibility is significantly associated with both CED and firm value, which indicates that failing to control for organizational visibility when examining the relationship between CED and firm value could yield misleading results. The results also show that prior CED significantly reduces current GHG. Interestingly, analyst coverage is found to play a full mediation role on the relationship between institutional ownership and firm value as well as a partial mediation role on the relationship between prior GHG and firm value. Thus, this study suggests that corporate management lobby financial analysts and educate them about their firms' environmental disclosure and performance to improve their information set and increase firm visibility and value.

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Section: Research Modelmentioning

confidence: 99%

“…institutional ownership (INST) (e.g., Arbel et al, 1983;Baker et al, 1999;Brockman et al, 2017;Merton, 1987).…”

Section: Organizational Visibility (Noa and Inst)mentioning

confidence: 99%

The impact of voluntary environmental disclosure on firm value: Does organizational visibility play a mediation role?

Hassan

2018

Bus Strat Env

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“…The prior literature documents that less visible firms can achieve certain benefits such as improved stock liquidity, reduced cost of capital, and increased stock intermediation by providing voluntary disclosure. Moreover, the prior literature finds that the effect of voluntary disclosure on those benefits is more significant for less visible firms (Bushan, 1989;Lang and Lundholm, 1996;Botosan, 1997;Brockman et al, 2017). This pronounced effect of voluntary disclosure also creates motivations for disclosure management by less visible firms (Davis and Tama-Sweet, 2012;Blankespoor et al, 2013;Hamrouni et al, 2015;Bhagwat and Burch, 2016).…”

Section: Firm Visibility and Voluntary Disclosures 221 Firm Visibilmentioning

confidence: 97%

“…Moreover, since disclosure effects are more pronounced for smaller and less-visible firms (Bushan, 1989;Lang and Lundholm, 1996;Botosan, 1997;Brockman et al, 2017), individual investors should be aware of opportunistic disclosure strategies in EPRs.…”

Section: Research Objectivementioning

confidence: 99%

“…Based on theories such as neglected firms (Arbel and Strebel, 1982;Arbel et al, 1983;Arbel, 1985) and the investor recognition hypothesis (Merton, 1987), prior research finds that firm visibility is affected by firm size (Coval and Moskowitz, 2001;Abarbanell et al, 2003), exchange prominence (Lehavy and Sloan, 2008), and investor relations programs (Bushee and Miller, 2012). Disclosure effects are more pronounced for less-visible firms (Bhushan, 1989;Lang and Lundholm, 1996;Botosan, 1997;Brockman et al, 2017), as measured by the extent of analyst following and institutional ownership. These effects create opportunities for impression management by less visible firms (Davis and Tama-Sweet, 2012;Blankespoor et al, 2013;Hamrouni et al, 2015;Bhagwat and Burch, 2016).…”

Section: Chapter 1 -Introductionmentioning

confidence: 99%

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Investor and Firm Perspectives on Impression Management in Earnings Press Releases: Insights from TSX Venture Exchange Firms

Mansurov¹

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The TSX Venture Exchange, one of the global leaders in providing opportunities to raise equity capital for small and emerging firms, plays an important role in the Canadian economy. However, TSX Venture Exchange firms have not yet received significant attention from academic scholars. This study examines 1,317 earnings press releases (EPRs) of TSX Venture Exchange firms to investigate whether, and how, low-visibility firms engage in impression management practices. It also explores investor perspectives on impression management by examining stock market and online investment discussion board reactions to apparent impression management. Overall, findings of this study indicate that low-visibility firms use various impression management strategies such as tone management, readability manipulation, causal reasoning, and the emphasis of positive performance by thematic manipulation, reinforcement, and repetition in their EPRs. Results of stock market reaction tests suggest that tone management and emphasis of positive performance positively affect cumulative abnormal return around the issue of EPRs; however, these effects dissipate or reverse in the longer-term. Similarly, online investment board participants are initially drawn to EPRs which emphasize positive performance and abnormally high positive tone around the issuance of EPRs. However, in the longer-term, discussion participants pay less attention to those EPRs and switch their interest to EPRs with higher reading complexity. Drawing on literature on impression management, firm visibility, and investor reaction, this study makes four important contributions to the existing literature. First, it exclusively focuses TSX Venture Exchange firms to study impression management practices of low-visibility firms. Second, this research offers a broad examination of firms' engagement in impression management practices by examining several impression management strategies together. Third, this study combines both the firm and the investor perspectives on impression management to effectively study impression management and its consequences. Finally, it analyzes online investment discussion board data to explore investors' reactions to apparent impression management, in addition to investigating stock market reaction. This study benefits low-visibility firms, individual investors and academics by expanding their knowledge of impression management and its consequences. Findings can also help financial regulators make policy decisions and educate investors on impression management and its consequences. This dissertation would not have been possible without the continued help and support of my thesis supervisor, Dr. Merridee Bujaki. Her encouragement, guidance, and insight have been crucial to the development of this work. I have grown tremendously as a researcher and writer thanks to her. I am deeply grateful and eternally indebted for her mentorship throughout my PhD years. Many thanks to the members of my thesis committee, Dr. Francois Brouard and Dr. Howard Nemiroff, who...

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Public access to in-house meeting reports and stock liquidity: evidence from China

Zhang,

Ding,

Zhou

2024

Rev Quant Finan Acc

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Investor Conferences, Firm Visibility, and Stock Liquidity

Cited by 8 publications

References 65 publications

The impact of voluntary environmental disclosure on firm value: Does organizational visibility play a mediation role?

The impact of voluntary environmental disclosure on firm value: Does organizational visibility play a mediation role?

Investor and Firm Perspectives on Impression Management in Earnings Press Releases: Insights from TSX Venture Exchange Firms

Public access to in-house meeting reports and stock liquidity: evidence from China

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