Peer Effects Among Financial Analysts

50 Pages Posted: 5 Jun 2019

See all articles by Truc (Peter) Do

Truc (Peter) Do

University of Queensland - Faculty of Business, Economics and Law

Huai Zhang

Nanyang Technological University (NTU)

Multiple version iconThere are 2 versions of this paper

Date Written: May 17, 2019


We hypothesize that the arrival of star analysts improves the performance of incumbent financial analysts while the departure of star analysts has the opposite effect. Our results consistent with this hypothesis are concentrated primarily in the tests related to star arrivals. Our findings are robust to an instrumental variable approach and a falsification test. In addition, we hypothesize that the impact of the arrival/departure of star analysts is more pronounced when the star analyst covers the same industry as the incumbents (especially for industries with high uncertainty), when the star analyst is more established, when the incumbent analysts are less experienced, and when the brokerage house has fewer existing star analysts. Overall, our paper offers evidence of peer effects among financial analysts, mainly through the arrival of star analysts.

Keywords: Financial Analyst, Star Analyst, Peer Effect, Knowledge Spillover

JEL Classification: D83, J24, J63

Suggested Citation

Do, Truc (Peter) and Zhang, Huai, Peer Effects Among Financial Analysts (May 17, 2019). Contemporary Accounting Research, Forthcoming, Available at SSRN:

Truc (Peter) Do

University of Queensland - Faculty of Business, Economics and Law ( email )

4072 Brisbane, Queensland

Huai Zhang (Contact Author)

Nanyang Technological University (NTU) ( email )

Nanyang Business School
50 Nanyang Ave.
Singapore, 639798
+65-6790-4097 (Phone)

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