Utilizing a unique data set of corporate site visits to Chinese capital market from 2013 to 2022, this study provides new evidence on the economic benefits brought by corporate site visits from a social network perspective. Specifically, we examine that whether information transmission through network of corporate site visits. Our results show that network centrality is positively associated with market information efficiency. This positive effect is robust and remains valid after a battery of robustness checks and endogeneity analyses, which verify the
existence of information interaction in the network of corporate site visits. Furthermore, we find evidence that network of company visits positively influence market information efficiency through lowering information asymmetry between investors and listed firms rather than the
“irrational factor” mechanism. In brief, our paper contributes to the existing research by presenting evidence that corporate site visits are significant venues for investors to gain and exchange information about listed companies.
展开