Non-Deal Roadshows, Post-Earnings Announcement Drift, & the Implications of Private Meetings

Non-Deal Roadshows (NDRs) are among the most valuable channels of management access; however, little is known about the implications of the information conveyed by NDRs. Using a novel dataset of NDR meetings, I investigate how they affect post-earnings announcement drift (PEAD). I find that PEAD declines after NDR activity when the most recent NDR occurs within one month before the earnings announcement. This decline is greatest among smaller firms, and firms with high idiosyncratic volatility, less concurrent earnings announcements, Friday earnings announcements, and infrequent NDRs. These findings suggest that NDRs promote market efficiency and convey information regarding upcoming earnings announcements.