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Managements ("insiders") of many corporations, especially small or newly-public firms, invest considerable resources in investor relations. We develop a model to explore the incentives of insiders to undertake such costly investments. We point out that insiders may undertake such investments not necessarily to improve the share price, but to enhance the liquidity of their block of shares. This leads to a divergence of interest between insiders and dispersed outside shareholders regardingdoi:10.2139/ssrn.354383 fatcat:chzrzz4qcbey3nwt7n7w6vwwyu