Does the Scope of the Sell-Side Analyst Industry Matter? An Examination of Bias, Accuracy, and Information Content of Analyst Reports

• 成果类型: Article
• 署名作者: Merkley, Kenneth; Michaely, Roni; Pacelli, Joseph
• 署名单位: Cornell University; Indiana University System; Indiana University Bloomington; IU Kelley School of Business
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12485
• 发表日期: 2017
• 页码: 1285-1334
• 关键词: CONFLICTS-OF-INTEREST; SECURITY ANALYSTS; CONFERENCE CALLS; stock returns; earnings announcements; FORECAST ACCURACY; cross-section; recommendations; COMPETITION; performance

摘要

We examine changes in the scope of the sell-side analyst industry and whether these changes impact information dissemination and the quality of analysts' reports. Our findings suggest that changes in the number of analysts covering an industry impact analyst competition and have significant spillover effects on other analysts' forecast accuracy, bias, report informativeness, and effort. These spillover industry effects are incremental to the effects of firm level changes in analyst coverage. Overall, a more significant sell-side analyst industry presence has positive externalities that can result in better functioning capital markets.