Discrimination in Access to Corporate Insiders

Last registered on December 10, 2024

Pre-Trial

Trial Information

General Information

Title
Discrimination in Access to Corporate Insiders
RCT ID
AEARCTR-0014975
Initial registration date
December 05, 2024

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
December 10, 2024, 11:20 AM EST

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

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Primary Investigator

Affiliation
University of Colorado Boulder

Other Primary Investigator(s)

PI Affiliation
Indiana University
PI Affiliation
Indiana University
PI Affiliation
Indiana University

Additional Trial Information

Status
In development
Start date
2024-12-09
End date
2025-05-31
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
We propose an experiment to examine how investor characteristics influence access to corporate insiders in U.S. public companies. Despite the well-documented benefits of insider access for investors, the mechanisms governing this access remain unclear. This opacity perpetuates information asymmetries and raises concerns about the fairness and inclusivity of capital markets. Our study will address this gap by providing causal evidence on both the likelihood of securing access and the quality of access granted. Our findings will provide evidence on the potential role discrimination plays in financial markets.
External Link(s)

Registration Citation

Citation
Moss, Austin et al. 2024. "Discrimination in Access to Corporate Insiders." AEA RCT Registry. December 10. https://doi.org/10.1257/rct.14975-1.0
Experimental Details

Interventions

Intervention(s)
Intervention Start Date
2024-12-09
Intervention End Date
2024-12-31

Primary Outcomes

Primary Outcomes (end points)
We will create a binary indicator variable, Meeting, equal to one if the company agrees to schedule a call, and zero otherwise.
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
As a secondary outcome measure, we will assess a company’s responsiveness by classifying interactions into four groups: (1) the company responds and is willing to schedule a call, (2) the company responds and is unwilling to schedule a call but is willing to answer questions via email, (3) the company responds but is not willing to talk nor makes an effort to answer questions via email, and (4) the company does not respond. Companies will be classified as non-responsive if they fail to reply within 14 days of the initial email and subsequent follow-up procedures outlined in Section 3. Based on these groupings, we will create an ordered variable, Responsiveness, taking the values 3, 2, 1, and 0 for companies classified in groups (1), (2), (3), and (4), respectively.

To quantify the timeliness and quality of information provision, we will create additional outcome variables. Speed of Response will measure the number of hours between our initial email and the first substantive IR response (i.e., excluding auto-replies), capturing how quickly investors receive attention from a real individual. For companies willing to schedule a call, we will create Speed of Meeting, measuring the number of business hours between our initial email and the earliest proposed call time. To provide evidence on the quality of information provision, we will measure Seniority, a ranked variable based on the job titles of individuals offered for calls, with the assumption that more senior representatives possess higher quality company information. We will hand-collect these job titles and create a ranking based on our sample.
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
We will conduct an email-based field experiment.
Experimental Design Details
Not available
Randomization Method
We will randomly assign companies in our sample to one of eight experimental conditions, subject to balance on market value of equity, personal vs generic IR email contact address, and retail ownership percentage, using the ‘randtreat’ Stata package.
Randomization Unit
Firm
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
2,750 firms
Sample size: planned number of observations
2,750 firms
Sample size (or number of clusters) by treatment arms
Approx. 345 firms per treatment arm.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
For Meeting dependent variable: Main effects: odds ratio of 0.77 Two-way interaction: odds ratio of 0.55
IRB

Institutional Review Boards (IRBs)

IRB Name
Indiana University IRB
IRB Approval Date
2024-07-02
IRB Approval Number
20892
Analysis Plan

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