Year: 2025
Type: article
Abstract: ABSTRACT This study examines the capital market implications of common investor relations (IR) representation, a phenomenon in which multiple public firms share the same external IR representative. Using a difference‐in‐differences research design, I document that common IR representation is associated with greater overlap in institutional ownership and sell‐side analyst coverage as well as similarities in disclosure practices among clients—even those operating in different industries. These effects culminate in heightened return comovement among firms sharing IR representation. My findings provide insight into the role of IR companies as capital market gatekeepers and suggest that when a firm outsources its IR function, the IR company influences its capital market connectivity.
Source: Journal of Accounting Research
Author: DAVID VOLANT
Institution: Indiana University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $4,420
OpenAlex ID: W4409467863