An academic from the University of California, who co-authored a paper on one-on-one fund manager meetings, has told the AFR firms benefit from them, even if nothing important is meant to be discussed.
“there does seem to be information being conveyed at these meetings, even in an environment where nothing material is meant to be disclosed,” David Solomon of the University of California told the newspaper.
“For a variety of reasons, most firms don’t maintain records of these meetings, and, if they do, they are very reluctant to give them up.
“If firms thought they would be subpoenaed by ASIC they would likely delete their calendars every month, because such records expose them to a lot of potential legal and regulatory scrutiny,” he said.
Australia’s corporate watchdog has said it will pay more attention to analyst results briefings, but has no plans to scrutinise the practice of one-on-one executive meetings.
Solomon and co-author Eugene Soltes of Harvard Business School examined records of all meetings with investors held over almost six years by an unnamed mid-cap NYSE-listed company, in their paper published earlier this year.
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