Peer-Level Analyst Transitions

57 Pages Posted: 12 Aug 2021

See all articles by Ole-Kristian Hope

Ole-Kristian Hope

University of Toronto - Rotman School of Management

Xijiang Su

Schulich School of Business, York University

Date Written: August 10, 2021


This study examines the effect of peer-level analyst transitions (i.e., switching between brokerage houses) on associated regular incumbent analysts’ forecasting performance. We employ a difference-in-differences research design with analyst fixed effects and compare incumbent analysts of different groups within the same broker and same time periods. We find that incumbents who cover at least one common industry as the transiting analyst (i.e., affected incumbents) issue more accurate and timely forecasts after a transiting analyst arrives than incumbents who cover different industries (i.e., unaffected incumbents). Further, affected incumbents issue less accurate forecasts after a transiting analyst leaves than do unaffected incumbents. We also examine potential mechanisms of knowledge spillover and find some evidence that the effect is more salient when the transiting analyst switches from a larger brokerage house, has greater industry scope, or covers geographically linked firms.

Keywords: Analysts, Peer-level analyst transitions, Peer Effects, Lateral knowledge sharing, Within-firm research design

JEL Classification: G30, J24, J62, M10, M12, M40, M41, M50, M51

Suggested Citation

Hope, Ole-Kristian and Su, Xijiang, Peer-Level Analyst Transitions (August 10, 2021). Rotman School of Management Working Paper No. 3902615, Available at SSRN: or

Ole-Kristian Hope (Contact Author)

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4


Xijiang Su

Schulich School of Business, York University ( email )

4700 Keele Street
Toronto, Ontario M3J 1P3 M3J 1P3

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