Corporate site visits disclosure and investment-q sensitivity

We examine whether the mandatory disclosure of corporate site visits (CSV) increases the real efficiency of the stock market, assisting the investment decision-making in the real side of the economy. We find that the disclosure of CSV information increases the sensitivity of corporate investments to stock price, i.e., investment-q sensitivity. This effect is especially pronounced in firms characterized by lower levels of informed trading, less private information embedded in stock prices, limited analyst coverage, greater product market uncertainty, and tighter financial constraints. These findings provide evidence that disclosing private information from investor-manager interactions enhances real efficiency in the market.