Abstract

http://ssrn.com/abstract=204570
 
 

References (44)



 
 

Citations (66)



 
 

Footnotes (23)



 


 



Analyst Activity Around the World


James J. Chang


University of Pennsylvania - The Wharton School

Tarun Khanna


Harvard University - Strategy Unit

Krishna Palepu


Harvard University - Harvard Business School; Harvard University - David Rockefeller Center for Latin American Research; Harvard Business Review; NBER; International Academy of Management

January 23, 2000

HBS Strategy Unit Working Paper No. 01-061

Abstract:     
In this paper we provide evidence on analyst activity and performance in 47 countries around the world, including several emerging market economies. Our empirical analysis first demonstrates wide variation in the extent and accuracy of analyst activity across our sample countries. A handful of country-specific measures, such as the average firm size, the size of the stock market relative to country GDP, the quality of accounting disclosures, and the country's legal origin, explain a sizeable part of this variation. For a subset of 15 emerging markets in Asia and Latin America, we also investigate the proposition that the business groups, commonly found in these regions, which often take the form of pyramidal ownership structures, hamper analyst activity and their forecast performance. We find that, after controlling for other factors, the earnings of group affiliates are indeed harder to forecast than those of unaffiliated firms. However, group affiliates are more likely to be followed by analysts. Our analysis also shows that the magnitude of the group effect is small, and that it is overshadowed by country-specific contextual factors. Overall, our results are consistent with the view that the transparency problem in an economy is primarily influenced by its legal and information context, rather than by how companies are organized in the economy.

Number of Pages in PDF File: 47

JEL Classification: G29, G32, G38, L20, P50, M41, M45

working papers series





Download This Paper

Date posted: February 27, 2000  

Suggested Citation

Chang, James J. and Khanna, Tarun and Palepu, Krishna, Analyst Activity Around the World (January 23, 2000). HBS Strategy Unit Working Paper No. 01-061. Available at SSRN: http://ssrn.com/abstract=204570 or http://dx.doi.org/10.2139/ssrn.204570

Contact Information

James Chang (Contact Author)
University of Pennsylvania - The Wharton School ( email )
3641 Locust Walk
Philadelphia, PA 19104-6365
United States
215-898-2610 (Phone)
215-573-2054 (Fax)
Tarun Khanna
Harvard University - Strategy Unit ( email )
Harvard Business School
Boston, MA 02163
United States
617-495-6038 (Phone)
617-495-0355 (Fax)
Krishna Palepu
Harvard University - Harvard Business School ( email )
Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States
617-495-6759 (Phone)
617-496-7363 (Fax)
HOME PAGE: http://drfd.hbs.edu/fit/public/facultyInfo.do?facInfo=pub&facId=6527
Harvard University - David Rockefeller Center for Latin American Research ( email )
1730 Cambridge St.
Cambridge, MA 02138
United States
HOME PAGE: http://www.drclas.harvard.edu/faculty/directory/professors/view/150
Harvard Business Review ( email )
Boston, MA
United States
HOME PAGE: http://hbr.org/authors/palepu
NBER ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
HOME PAGE: http://www.nber.org/people/krishna_palepu
International Academy of Management ( email )
Avenida Pearson 21
Barcelona, 08034
Spain
HOME PAGE: http://theiam.ws/?person=palepu-krishna
Feedback to SSRN


Paper statistics
Abstract Views: 10,016
Downloads: 3,107
Download Rank: 1,643
References:  44
Citations:  66
Footnotes:  23

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.469 seconds