Abstract
We uncover the information contained in institutional investors’ collective corporate visit behaviors, which is incremental to their private information privileges. Abnormal institutional visit (AIV) significantly predicts cross-sectional stock returns in a positive direction, consistent with the hypothesis that given short-sale constraints and limited resources, institutions systematically allocate more visit efforts to firms that they deem to have promising prospects. Moreover, such information is yet not effectively reflected in analyst forecasts until firms officially announce the earnings, suggesting limitations in the role played by sell-side analysts as intermediaries to convey information to the market.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
