SELECTIVE DISCLOSURE AND BRAZILIAN CORPORATIONS’ CONFERENCES TO FINANCIAL ANALYSTS

Abstract

Brazilian companies’ presentations to financial analysts offer yet another disclosure channel for the stock market. Despite the fact that the information released in such meetings has already been disclosed previously through other means, there remains the concern that the discussion that follow such presentations may influence the stock market in terms of shaping analysts’ positive or negative expectations about the company. Depending upon the quality and depth of such questioning, such meetings may generate relevant information that is selectively disclosed only to participants. Employing standard event study techniques, this study investigates the behavior of abnormal stock returns of 91 companies in 247 presentations in São Paulo between 1997 and 2001. The findings indicate that in general the information released in these presentations have not given rise to significant abnormal returns over the period of the study.