Determinants of Sell-Side Financial Analysts' Use of Non-Financial Information

Accounting and Business Research, Forthcoming

39 Pages Posted: 29 Oct 2009

See all articles by Raf Orens

Raf Orens

Catholic University of Louvain (UCL) - Lessius University College

Nadine Lybaert

Hasselt University

Date Written: October 26, 2009

Abstract

This paper aims to research the context within which sell-side financial analysts make decisions to use corporate non-financial information. Prior research has demonstrated that financial analysts take into account non-financial information in their analyses of firms, but knowledge is scarce about what determines their use of this information. Based on a survey conducted among Belgian financial analysts, we observe a significant negative association between the financial analysts’ use of non-financial information and the earnings informativeness of firm’s financial statement information proxied by leverage and stock return volatility. We also find that a higher amount of non-financial information is used by less experienced financial analysts and by financial analysts covering a higher number of firms.

Keywords: financial analysts, market for information, non-financial information, use of non-financial information

Suggested Citation

Orens, Raf and Lybaert, Nadine, Determinants of Sell-Side Financial Analysts' Use of Non-Financial Information (October 26, 2009). Accounting and Business Research, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1494296

Raf Orens (Contact Author)

Catholic University of Louvain (UCL) - Lessius University College ( email )

Department of Business Studies
Korte Nieuwstraat 33
Antwerp, 2000
Belgium

Nadine Lybaert

Hasselt University ( email )

Agoralaan - building D
Gebouw D
Diepenbeek, 3590
Belgium

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