Broker-hosted investor conferences

- We study the determinants and the consequences of broker-hosted investor conferences.
- Conferences are common when demand for management access is high and when firm incentives to participate are strong.
- Hosting brokers are rewarded with increased commission revenue.
- Firm benefits include greater investor recognition, liquidity, and firm value.
- Our results illustrate the interconnectedness of corporate disclosure and brokerage research activities.

We examine the determinants and consequences of broker-hosted investor conferences. We find the number of brokers hosting a firm at conferences is positively related to institutional ownership and intangible assets, consistent with greater client demand for management access among hard-to-value firms. Younger firms and those that issue equity in the future attend more conferences, suggesting firms view conference participation as a means to enhance investor recognition. Hosting brokers are rewarded with increased commission revenue. Commission share increases by 0.61% during the conference week, with larger increases following more informative conference disclosures. Firms also benefit from conference participation. In the subsequent year, conference firms are followed by an additional 0.34 analysts, undergo a 6% reduction in bid-ask spread, and experience a 0.03 increase in Tobin׳s q.