The Role of analysts in intra-industry information transfer

G Hilary, R (Rui) Shen

Research output: Contribution to journalArticleAcademicpeer-review

39 Citations (Scopus)

Abstract

When a firm issues a management forecast, analysts who have observed more forecasts from this firm since covering it (i.e., have more MF-Experience) subsequently improve their own accuracy more and provide timelier earnings forecasts for other (non-issuing) firms in the same industry. We also find that, subsequent to a management forecast, investors are more responsive to forecast revisions for non-issuing firms made by analysts with more MF-Experience. Further tests suggest that our results are not explained by endogeneity in firm coverage.
Original languageEnglish
Pages (from-to)1265-1287
Number of pages23
JournalThe Accounting Review
Volume88
Issue number4
DOIs
Publication statusPublished - 2013

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