Do analysts add value when they most can? Evidence from corporate spin-offs

• 成果类型: Article
• 署名作者: Feldman, Emilie R.; Gilson, Stuart C.; Villalonga, Belen
• 署名单位: University of Pennsylvania; Harvard University; New York University
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.2169
• 发表日期: 2014
• 页码: 1446-1463
• 关键词: Analysts; spin-offs; DIVERSIFICATION DISCOUNT; information asymmetry; corporate strategy

摘要

This article investigates how securities analysts help investors understand the value of diversification. By studying the research that analysts produce about companies that have announced corporate spin-offs, we gain unique insights into how analysts portray diversified firms to the investment community. We find that while analysts' research about these companies is associated with improved forecast accuracy, the value of their research about the spun-off subsidiaries is more limited. For both diversified firms and their spun-off subsidiaries, analysts' research is more valuable when information asymmetry between the management of these entities and investors is higher. These findings contribute to the corporate strategy literature by shedding light on the roots of the diversification discount and by showing how analysts' research enables investors to overcome asymmetric information. Copyright (c) 2013 John Wiley & Sons, Ltd.