why Mutual Funds go to Private In-house Meetings? --Evidence from Shenzhen Stock Exchange (SZSE)

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  While private in-house meetings are common across the world, there is no detail reporting requirements on these meetings.Shenzhen Stock Exchange (SZSE) in China is an exception, which requires firms to make detail disclosure on these meetings.We develop a unique and large scale hand-collected dataset by accessing approximately 17,633 private in-house meeting reports over 2012-2014 period and use the meeting details to examine why the mutual funds go to private in-house meeting, and find that when mutual funds meet privately with management they are more correlated than the trades of other mutual funds and make more informed trading decisions.Furthermore, compared to only mutual funds in-house meeting, in joint-in-house meeting, this improvement in trading is more concentrated.Overall, our results suggest that private in-house meetings help a select group of mutual funds make more informed trading decisions.
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