Impacts of Korean Firms’ Overseas and Domestic Investor Relation Activities on Stock Prices

We empirically analyze the impacts of overseas and domestic investor relation(IR) activities on stock prices in the Korean market. We found several interesting results as follows. First, overall IR activities have a positive impact on stock prices. Second, between IR activities held at home and abroad, we found no significant difference in the stock price impacts. Third, comparing the impacts of one-on-one IRs and group IRs on the stock prices, we did not find any significant difference. Fourth, comparing Korea Exchange-sponsored IRs and individual company-sponsored IR, we found that individual firms’ IR has more positive impact on stock prices than KRX-led IR. Last, but not least, IRs by companies with higher foreign stock ownership have a less positive impact on stock prices, partly attributable to less information asymmetry between foreign and domestic investors or management. Meanwhile, IRs by companies with higher return on equity(ROE) has a positive stock price impact.