Seeing is believing: analysts' corporate site visits

• 成果类型: Article
• 署名作者: Cheng, Qiang; Du, Fei; Wang, Xin; Wang, Yutao
• 署名单位: Singapore Management University; University of Hong Kong; Central University of Finance & Economics
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1007/s11142-016-9368-9
• 发表日期: 2016
• 页码: 1245-1286
• 关键词: SELL-SIDE ANALYSTS; EARNINGS FORECASTS; information-content; SECURITY ANALYSTS; performance; investors; management; revisions; geography; accuracy

摘要

This study examines the impact of corporate site visits on analysts' forecast accuracy based on a sample of such visits to Chinese listed firms during 2009-2012. We find that analysts who conduct visits (visiting analysts) have a greater increase in forecast accuracy than other analysts. Consistent with the notion that site visits facilitate analysts' information acquisition through observing firms' operations, we find that the results are stronger for manufacturing firms, firms with more tangible assets, and firms with more concentrated business lines. Moreover, we find that the effect of a site visit is greater when the site visit is an analyst-only visit, when the current visit is preceded by fewer visits, and when visiting analysts are based far from the visited firms. Furthermore, we find that site visits partially mitigate nonlocal analysts' information disadvantage. Collectively, these results indicate that site visits are an important information acquisition activity for analysts.