In May, the Wall Street Journal sparked a public storm when it called attention to the long-standing practice of corporate executives and investment bankers meeting privately with institutional traders. The same month, a survey of 400 investors and analysts by PwC and the Rotterdam School of Management found that 47% said they often receive material information in one-on-one meetings with companies. In the latest study, professors Brian Bushee of the University of Pennsylvania, Michael Jung of New York University and Gregory Miller of the University of Michigan say they have found evidence that “investors exploit their selective access to management to execute larger and more profitable trades.”
Read more: Despite Reg FD, study finds traders profit from private CEO meetings — IR Web Report
