Intra-Firm Knowledge Sharing in the Investment Research Industry

57 Pages Posted: 20 Oct 2016 Last revised: 16 May 2022

See all articles by Artur Hugon

Artur Hugon

Arizona State University (ASU)

An-Ping Lin

Singapore Management University - School of Accountancy

Stanimir Markov

University of Texas at Dallas - Naveen Jindal School of Management

Date Written: May 16, 2022

Abstract

We study inter-department knowledge sharing in an investment research setting where the benefits are potentially significant for the brokerage and the capital market, but so are the frictions impeding it. Using hand-collected data on equity analyst access to in-house debt research expertise, we find significant benefits to equity analysts in the form of improved ability to forecast cash flows and to anticipate credit rating downgrades. Moreover, we find evidence that access to management and research expertise underlie in-house debt analysts’ capacity to generate information beneficial to equity analysts. Finally, these benefits exist only in the presence of a collaborative brokerage culture or debt-equity analyst collocation, consistent with these factors promoting knowledge sharing in the investment research industry.

Keywords: Knowledge Sharing, Equity Analysts, Debt Analysts

JEL Classification: D53, G12, G14, G24

Suggested Citation

Hugon, Artur and Lin, An-Ping and Markov, Stanimir, Intra-Firm Knowledge Sharing in the Investment Research Industry (May 16, 2022). Singapore Management University School of Accountancy Research Paper No. 2016-53, Available at SSRN: https://ssrn.com/abstract=2854519 or http://dx.doi.org/10.2139/ssrn.2854519

Artur Hugon (Contact Author)

Arizona State University (ASU) ( email )

Farmer Building 440G PO Box 872011
Tempe, AZ 85287
United States

An-Ping Lin

Singapore Management University - School of Accountancy ( email )

60 Stamford Road
Singapore 178900
Singapore

Stanimir Markov

University of Texas at Dallas - Naveen Jindal School of Management ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States
972 883 5166 (Phone)

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