New Study Examines "Black Box" of Private Investor Meetings

In the US there is a “black box” type meeting takes place with select investors. This is where corporate executives secretly yet legally meet with institutional investors to discuss their business and the industry outlookin general. This insider information trail is the subject of an academic report from five researchers. But rather than study US private meetings, which are confidential and thus not quantifiable, the study target were companies traded in China, where such private meetings are required to be documented and eventually publicly disclosed. The study findings, that significant stock trading took place around private meetings, shouldn’t be much of a surprise. The real value in the meetings, however, may not be obtaining obvious nonpublic information with...