Sell-Side School Ties

• 成果类型: Article
• 署名作者: Cohen, Lauren; Frazzini, Andrea; Malloy, Christopher
• 署名单位: Harvard University; National Bureau of Economic Research; University of Chicago
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2010.01574.x
• 发表日期: 2010
• 页码: 1409-1437
• 关键词: analyst recommendations; EARNINGS FORECASTS; SECURITY ANALYSTS; career concerns; REGULATION FD; SMALL WORLD; INVESTMENT; performance; STOCK; returns

摘要

We study the impact of social networks on agents' ability to gather superior information about firms. Exploiting novel data on the educational background of sell-side analysts and senior corporate officers, we find that analysts outperform by up to 6.60% per year on their stock recommendations when they have an educational link to the company. Pre-Reg FD, this school-tie return premium is 9.36% per year, while post-Reg FD it is nearly zero. In contrast, in an environment that did not change selective disclosure regulation (the U.K.), the school-tie premium is large and significant over the entire sample period.