کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
5089393 | 1375591 | 2013 | 14 صفحه PDF | دانلود رایگان |
Using a unique database in China, we extend the literature to further distinguish the information production role of star vs. non-star analysts. We confirm the general conclusion of a positive association between analyst coverage and stock return synchronicity measured by a firm's R2 in China. The findings from star analysts, however, show that star analyst coverage actually decreases stock return synchronicity. We contend that the firm-specific human capital in star analysts helps the analysts overcome the challenges of information production in an emerging market. The superior firm-specific human capital argument of star analysts is further supported by the negative association of star analysts' firm-specific experiences and stock return synchronicity. Our conclusions are robust to different specifications of star analyst presence and different definitions of analysts' firm-specific experiences. We also find that star analysts exhibit a more accurate earnings forecast than non-star analysts.
⺠We extend the literature by studying the role of star vis-à -vis non-star analysts. ⺠Analyst coverage and stock return synchronicity in China is positively correlated. ⺠Star analysts coverage actually decreases stock return synchronicity. ⺠The firm-specific human capital in star analysts explains the findings.
Journal: Journal of Banking & Finance - Volume 37, Issue 1, January 2013, Pages 89-102