Acctg. Seminar: Anne Heinrichs (Chicago) "Investors’ access to corporate management: A field experiment about 1-on-1-calls"
Tuesday, February 18
12:30pm – 2:00pm EST
Uris 3rd Floor - 331
3022 Broadway, New York, NY 10027
Event Details
Using a combination of field experimental and archival empirical design, I study investors’ personal access to corporate management in the context of public disclosure and find the following results: (1) high willingness of senior management to engage in 1-on-1-calls with investors to discuss disclosure related questions, (2) corporate accessibility increases with management’s own communication benefits and (3) post-Reg FD’s best practices do not explain management access. In a field experiment, 2,563 publicly-traded firms receive two identical emails, seeking 1-on-1-calls to clarify MD&A related questions. Emails are sent from two distinct audiences, identifiable via web domain names, as investors and consultants. Almost 58% of firms reply to outsiders’ email requests and a majority of responses come from senior management offering phone numbers and best times to call. Management access is lower for the consultant-audience which differs in perceived (proprietary) costs and (capital market) benefits from the investor-audience. To investors, management is more accessible when shareholder activism is high and MTB is low. Significant management access is offered during quiet periods and such periods do not explain firms’ non-responses. Together, this paper analyzes an important but academically uninvestigated source for gaining an enhanced understanding of public disclosure. It also serves as a starting point for a new line of work in disclosure-related accounting research that combines field experiments with archival empirical techniques to exploit randomized induced variation in real-world settings.
Where & When

Uris 3rd Floor - 331
3022 Broadway
New York, NY 10027

Tuesday, February 18, 12:30pm – 2:00pm

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