Download This PaperIntra-Firm Knowledge Sharing in the Investment Research Industry
43 Pages Posted: 20 Oct 2016 Last revised: 12 Oct 2022
Date Written: October 11, 2022
Abstract
We study inter-department knowledge sharing in an investment research setting where the benefits are potentially significant for the brokerage and the capital market, but so are the frictions impeding it. Using hand-collected data on equity analyst access to in-house debt research expertise, we find significant benefits to equity analysts in the form of improved ability to forecast cash flows and to anticipate credit rating downgrades. Moreover, we find evidence that access to management and research expertise underlie in-house debt analysts’ capacity to generate information beneficial to equity analysts. Finally, these benefits exist only in the presence of a collaborative brokerage culture or debt-equity analyst collocation, consistent with these factors promoting knowledge sharing in the investment research industry.
Keywords: Knowledge Sharing, Equity Analysts, Debt Analysts
JEL Classification: D53, G12, G14, G24
Suggested Citation: Suggested Citation
An-Ping Lin
Singapore Management University - School of Accountancy ( email )
60 Stamford Road
Singapore 178900
Singapore