Shareholder Coordination, Information Diffusion and Stock Returns

Authors

Christos Pantzalis, University of South Florida
Bin Wang, Marquette UniversityFollow

Document Type

Article

Publication Date

11-2017

Publisher

Wiley

Source Publication

Financial Review

Source ISSN

0732-8516

Original Item ID

10.1111/fire.12124

Abstract

We show that the quality of information-sharing networks linking firms’ institutional investors has stock return predictability implications. We find that firms with high shareholder coordination experience less local comovement and less post-earnings announcement drift, consistent with the notion that information-sharing networks facilitate information diffusion and improve stock price efficiency. In support of the view that coordination acts as an information diffusion channel, we document that the stock return performance of firms with high shareholder coordination leads that of firms with low shareholder coordination.

Comments

Accepted version. Financial Review, Vol. 52, No. 4 (November 2017): 563-595. DOI. © 2017 Wiley. Used with permission.

Recommended Citation

Pantzalis, Christos and Wang, Bin, "Shareholder Coordination, Information Diffusion and Stock Returns" (2017). Finance Faculty Research and Publications. 160.
https://epublications.marquette.edu/fin_fac/160