Do Analysts' Notes Provide New Information?

35 Pages Posted: 30 May 2009 Last revised: 11 Aug 2009

See all articles by Gus De Franco

Gus De Franco

Purdue University

Ole-Kristian Hope

University of Toronto - Rotman School of Management

Date Written: August 5, 2009


This paper systematically studies analysts' notes, an important form of analyst disclosure not previously studied in the literature. Analyst notes are written disclosures that represent a product of sell-side analysts' daily effort and provide a vehicle for analysts to communicate their information and analysis in far more detail than a summary forecast or recommendation. We provide strong evidence that analyst notes are informative for capital market participants. Specifically, we find both statistically significant and economically meaningful stock market reactions to analyst notes. This result holds after controlling for numerous major firm disclosures (earnings announcements, quantitative and qualitative management forecasts, conference calls, and press releases) and previously documented analyst disclosures (forecasts, recommendations, and reports).

Keywords: analysts, analyst notes, information content, disclosure

JEL Classification: G14, G3, M1, M41

Suggested Citation

De Franco, Gus and Hope, Ole-Kristian, Do Analysts' Notes Provide New Information? (August 5, 2009). Journal of Accounting, Auditing and Finance, Forthcoming, Available at SSRN: or

Gus De Franco

Purdue University ( email )

610 Purdue Mall
West Lafayette, IN 47907
United States

Ole-Kristian Hope (Contact Author)

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4


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