Presenter: Clifton Green, Emory University

Title: Expert Network Calls

Abstract: Expert networks provide investors with in-depth discussions with subject matter experts. Expert call demand is higher for younger, technology-oriented firms and those with greater intangible assets, consistent with demand for information regarding hard-to-value firms. We find that expert call volume is associated with hedge fund sales, greater short interest, more efficient price response to negative news, and poor firm performance. The evidence is stronger for calls that are negative in tone, and expert sentiment plays a more prominent role than client sentiment. The findings are consistent with expert networks helping investors discern complicated bad news.

Host: Steffen Meyer