Working paper
Behind Closed Doors: An Investigation of Investor Relations Officer Disclosures in Private Meetings with Investors
SSRN
09/01/2021
DOI: 10.2139/ssrn.3914167
Abstract
We examine how investor relations officers (IROs) approach disclosure decisions in private meetings with investors. In these settings, IROs face conflicting pressures to maintain a “level playing field” for all investors while also pleasing preferred investors. We experimentally test how explicit pre-disclosure consideration of materiality, recommended by professional standards, affects disclosure to more and less preferred investors. A total of 239 experienced IROs evaluate plausibly material information across two experiments and 197 professional investors rate IROs’ crafted disclosures. Contrary to Regulation Fair Disclosure and professional standards, we find that explicit consideration of materiality increases selective disclosure to preferred investors. In contrast, without explicit consideration of materiality, there is limited disclosure to both investor types, and IROs subsequently change their evaluations of materiality to rationalize not providing selective disclosure to preferred investors. Debriefing data indicates that IROs are aware that selective disclosure occurs. Our results have implications for firms and regulators
Details
- Title: Subtitle
- Behind Closed Doors: An Investigation of Investor Relations Officer Disclosures in Private Meetings with Investors
- Creators
- H. Scott AsayShana Clor-ProellMichael T Durney
- Resource Type
- Working paper
- DOI
- 10.2139/ssrn.3914167
- Publisher
- SSRN
- Number of pages
- 44 pages
- Language
- English
- Date posted
- 09/01/2021
- Date updated
- 02/24/2024
- Academic Unit
- Accounting
- Record Identifier
- 9984398860002771
Metrics
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