The Effect of Conference Calls on Information Asymmetry
Author
Abstract
This study uses an examination of the intra-day probability of information-based trading to determine whether holding conference calls can reduce the degree of information asymmetry. This study adopts propensity score matching and difference-in-differences estimation method. Furthermore, we also use pre-day probability of information-based trading to implement matching and Heckman two-stage model for a sensitivity analysis. Our results support the hypothesis, and thus provide evidence that such voluntary disclosures can mitigate information asymmetry problem in the capital market of Taiwan.
Key Words
Conference Calls, Probability of Information-based Trading, Information Asymmetry
