Do the frequencies of analyst coverage and conference calls influence stock market trading? Evidence from Taiwan

Authors: Lie-Huey Wang; Hsien-Chang Kuo

Journal: Corporate Management Review. Dec. 2022, 42(2): 1-49

Keywords: Analyst coverage, conference calls, stock turnover rate, stock price range, institutional investors

Abstract:
This research investigates whether the frequencies of analyst coverage and conference calls affect stock trading by using a sample of Taiwanese listed companies over the period 2009-2015. The results show that analyst coverage has a greater impact on stock turnover and price range than conference calls have. In particular, domestic analyst coverage has a significantly positive impact on stock turnover and price range. Involuntary conference calls have significant effects on stock market trading, but voluntary calls do not. Furthermore, the frequencies of analyst coverage and involuntary conference calls affect stock market trading by influencing institutional investor trading. Firms with analyst coverage or conference calls have higher institutional investor stock trades than firms without analyst coverage or conference calls do. Finally, analyst coverage has a mediating effect on the correlation between conference calls and stock trading.