Analyst Workload and Information Production: Evidence from IPO Assignments

60 Pages Posted: 21 Aug 2016 Last revised: 22 Apr 2021

See all articles by Kevin Pisciotta

Kevin Pisciotta

University of Kansas - School of Business

Date Written: April 21, 2021

Abstract

I examine how changes in analyst workload affect analyst information production. During periods when analysts are working on IPOs, the quality of their research declines for the non-IPO firms they cover at the same time. Consistent with increased workload reducing analyst information production, analysts' forecasts during these periods deviate less from their own prior forecasts and the forecasts of their peers. The reduction in research quality is particularly large among less important portfolio firms. Lastly, I provide evidence that reductions in research quality from IPO-assigned analysts has real effects: increases in analyst workload lead to increases in firm-level information asymmetry.

Keywords: Analyst Workload, Initial Public Offerings, Sell-side Analysts, Consequences to Analyst Research

JEL Classification: G14, G24, G41

Suggested Citation

Pisciotta, Kevin, Analyst Workload and Information Production: Evidence from IPO Assignments (April 21, 2021). Available at SSRN: https://ssrn.com/abstract=2826911 or http://dx.doi.org/10.2139/ssrn.2826911

Kevin Pisciotta (Contact Author)

University of Kansas - School of Business ( email )

Capital Federal Hall
1654 Naismith Dr
Lawrence, KS 66045
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
193
Abstract Views
1,722
rank
195,217
PlumX Metrics