Download This PaperThe Role of Analysts in Intra-Industry Information Transfer
Forthcoming in The Accounting Review
51 Pages Posted: 4 Feb 2013
Date Written: February 4, 2013
Abstract
When a firm issues a management forecast, analysts who have observed more forecasts from this firm since covering it (i.e., have more MF-experience) subsequently improve their own accuracy more and provide timelier earnings forecasts for other (non–issuing) firms in the same industry. We also find that, subsequent to a management forecast, investors are more responsive to forecast revisions for non‐issuing firms made by analysts with more MF-experience. Further tests suggest that our results are not explained by endogeneity in firm coverage.
Keywords: information transfer; financial analysts; externalities
JEL Classification: M4, G1
Suggested Citation: Suggested Citation
Gilles Hilary (Contact Author)
Georgetown University - McDonough School of Business ( email )
3700 O Street, NW
Washington, DC 20057
United States
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