Does Foreign Investors’ Information Access Vary with Geopolitical Tensions? Evidence from Corporate Conference Calls
研究了地缘政治紧张如何影响外国投资者获取公司信息，发现紧张加剧时外国投资者参与减少、管理层回答质量下降，且公司会减少英文翻译，导致外国股票折价更大。
ABSTRACT We study how foreign investors’ access to corporate information varies with pairwise geopolitical tensions between the investor's and investee's countries. Using a sample of 1,760 country‐pairs, we find that geopolitical tensions between a conference call host firm's country and a foreign country relate negatively with investor participation from that foreign country as well as the quality and tone of management responses in the call, suggesting reduced foreign investor information access with rising tensions. A single‐country analysis of Chinese AB‐share firms produces similar inferences. With higher China–foreign tensions, foreign attendance at private meetings with management declines, and English translations of local language disclosures become less frequent and shorter in length. Curtailment in English translations is more pronounced when local language disclosures contain politically sensitive words, suggesting lower information supply by firm choice. Reduced disclosures from geopolitical tensions are impounded in foreign investors’ asset pricing decisions, resulting in steeper foreign‐share price discounts.