Accounting and Finance Seminar - Peter Pope (Bocconi)
30 September 2019, 1.00 PM - 28 August 2019, 2.15 PM
G.15, 15-19 Tyndalls Park Road
Title - Broker-hosted credit investor conferences: Evidence from the corporate bond market
This paper investigates the effects of broker-hosted credit conferences on the corporate bond market. We find that firms with a greater probability of financial distress, more public debt, and lower time-to-maturity of bonds are more likely to attend credit conferences. Next, we find that the bond market mainly reacts to credit conferences, rather than non-credit conferences. In addition, we document a greater market reaction to credit conferences when bonds have speculative grades and short time-to-maturity. Furthermore, we find that firms attending credit conferences benefit from a reduction in the cost of debt in the following months. Lastly, we document an increase in the bond institutional investor ownership after the credit conference participation, and such increase is mainly attributed to mutual fund investors. None of these results hold for non-credit conferences.