Expert Network Calls
2024-01-08 10:23:52
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. Expert calls are more (less) likely to emphasize technology (financial) topics relative to earnings calls. We find that expert call volume is associated with hedge fund sales, greater short interest, negative firm performance, and more efficient price response to negative news, and the evidence is stronger for calls with more negative sentiment. The findings suggest that expert networks help investors discern complicated bad news.