The Real Effects of Financial Shocks: Evidence from Exogenous Changes in Analyst Coverage

• 成果类型: Article
• 署名作者: Derrien, Francois; Kecskes, Ambrus
• 署名单位: Hautes Etudes Commerciales (HEC) Paris; York University - Canada
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12042
• 发表日期: 2013
• 页码: 1407-1440
• 关键词: cross-section; stock returns; INFORMATION; recommendations; constraints; MARKETS; IMPACT; FIRMS; cash; FLOW

摘要

We study the causal effects of analyst coverage on corporate investment and financing policies. We hypothesize that a decrease in analyst coverage increases information asymmetry and thus increases the cost of capital; as a result, firms decrease their investment and financing. We use broker closures and broker mergers to identify changes in analyst coverage that are exogenous to corporate policies. Using a difference-in-differences approach, we find that firms that lose an analyst decrease their investment and financing by 1.9% and 2.0% of total assets, respectively, compared to similar firms that do not lose an analyst.