Private Interaction Between Firm Management and Sell‐Side Analysts

Abstract:     
I investigate interaction that occurs privately between sell-side analysts and senior management by examining a set of internal records compiled by a large-cap NYSE traded firm. I find that certain types of analysts interact more frequently with management including those who cover fewer firms, have less experience as an analyst, expend more effort covering the firm, and work for more influential firms. Private interaction between analysts and managers also differs from public interaction that occurs via conference calls in terms of the timing of interaction and depth of management access. Overall, the analysis suggests that private interaction with management can be an important communication channel for analysts for reasons other than firm-specific forecasting news.

Number of Pages in PDF File: 46

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