Do investors listen?

"Do Investors Listen? Exploring the effect of investor relationship management on firm-specific stock return variation"  

• Article publication date: 2022 
• DOI to Review Research Article
• Do investors listen? Exploring the effect of investor relationship management on firm-specific stock return variation
• Paramita Gupta , Dan He , Yulong Ma , Jasmine Yur-Austin 

The study examines how a firm’s investor relationship management may help explain the variation in the firm’s stock return using the Chinese stock market data. It finds a firm’s investor relationship management has a significant positive effect on the magnitude of firm-specific return variation in its stock. The study further finds that the relationship varies across different regions in China because of the differences in the institutional environment. It shows a stronger relationship for firms in regions with a high level of marketization, a high degree of rule of law, and a low degree of government intervention.