The Use and Usefulness of Big Data in Finance: Evidence from Financial Analysts

• 成果类型: Article
• 署名作者: Chi, Feng; Hwang, Byoung-Hyoun; Zheng, Yaping
• 署名单位: Cornell University; Nanyang Technological University; University of Alberta
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2022.02659
• 发表日期: 2025
• 关键词: big data; Alternative data; Sell-side analysts; investors

摘要

Alternative data have become a new source of information for investors. This paper examines how this development is reshaping the role of sell-side analysts. Employing textual analysis of analysts' written reports, we show that analysts themselves have begun to adopt alternative data in their analyses. Furthermore, we find that when analysts report drawing from alternative data they generate more accurate earnings forecasts, and their brokerages subsequently receive higher amounts in trading commissions from investors, suggesting that investors value the adoption of alternative data by analysts.