Do Analysts and their Employers Value Access to Management? Evidence from Earnings Conference Call Participation

Journal of Financial and Quantitative Analysis, Forthcoming

61 Pages Posted: 11 Jan 2016 Last revised: 22 Jan 2020

See all articles by Ling Cen

Ling Cen

The Chinese University of Hong Kong

Jing Chen

China Agriculture University; Institute of Digital Finance, Peking University

Sudipto Dasgupta

Lancaster University

Vanitha Ragunathan

University of Queensland - Business School; Financial Research Network (FIRN)

Date Written: January 21, 2020

Abstract

The literature examining analyst activity assumes that access to management is valued by analysts and their employers. We propose a readily observable measure of access: how often an analyst is invited to be among the first to ask questions in the Q&A session of an earnings conference call. These “early participants” are more successful in the labor market than peers from the same brokerage when their brokerages close. Our results show that access is valued by both sell-side and buy-side employers and reflects connectivity to management as well as dimensions of analyst skill not captured in traditional measures of performance.

Keywords: Career Outcomes; Analyst Forecasts and Recommendations; Earnings Conference Calls

JEL Classification: G23; G24; J40

Suggested Citation

Cen, Ling and Chen, Jing and Dasgupta, Sudipto and Ragunathan, Vanitha, Do Analysts and their Employers Value Access to Management? Evidence from Earnings Conference Call Participation (January 21, 2020). Journal of Financial and Quantitative Analysis, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2713535 or http://dx.doi.org/10.2139/ssrn.2713535

Ling Cen

The Chinese University of Hong Kong ( email )

CYT Building
Sha Tin
Hong Kong, Hong Kong
Hong Kong

HOME PAGE: http:///sites.google.com/site/cenling/

Jing Chen

China Agriculture University ( email )

17 Qinghua East Rd
Beijing, Beijing 100087
China

Institute of Digital Finance, Peking University ( email )

No. 38 Xueyuan Road
Haidian District
Beijing, Beijing 100871
China

Sudipto Dasgupta (Contact Author)

Lancaster University ( email )

Lancaster LA1 4YX
United Kingdom

Vanitha Ragunathan

University of Queensland - Business School ( email )

Brisbane, Queensland 4072
Australia
(07) 3365 8204 (Phone)
(07) 3365 6988 (Fax)

Financial Research Network (FIRN) ( email )

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

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