Capital Market Days as an Investor Relations Instrument
Author | : Karla Linden |
Publisher | : |
Total Pages | : 0 |
Release | : 2019 |
ISBN-10 | : OCLC:1121210208 |
ISBN-13 | : |
Rating | : 4/5 (08 Downloads) |
Book excerpt: This dissertation examines Capital Market Days as an Investor Relations instrument. Capital Market Days have been increasingly demanded and valued by analysts and institutional investors, especially since the Markets in Financial Instruments Directive II (MiFID II) came into force in 2018. At the same time, academic research on Capital Market Days is at a very early stage. Only one empirical study exists so far, focusing on the US market. This dissertation significantly contributes to previous academic research by examining Capital Market Days in another geographical area as well as by uncovering so far unexamined aspects of Capital Market Days. The empirical analyses are based on a dataset of 382 Capital Market Days hosted by DAX, MDAX, SDAX, and TecDAX listed corporations from 2000 to 2017. The descriptive statistics reveal that Capital Market Days are increasingly used by German corporations with the majority of the 160 companies in the sample having already made use of this disclosure instrument. The results of the logistic regression show that the likelihood of hosting a Capital Market Day increases for companies with a higher demand for information, higher complexity, greater need for reputation improvement, more extensive hosting history, and fewer other face-to-face interaction events. According to the results of the event study, the cumulative average abnormal return equals 1.06 percent in the 31-day event window. This return behavior is primarily driven by high levels of awareness in the pre-event period. From the event date on, the returns stabilize and remain on the high pre-event level, suggesting that Capital Market Days are informative disclosure events. The results of the multiple regression demonstrate that the share price reaction is particularly pronounced for companies with a lower visibility, more intangible assets, a higher leverage ratio, a financial loss in the previous year, and experience in hosting int.