The Accounting Review Vol. 88 No. 4 2013
The Role of Analysts in Intra-Industry Information Transfer
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. Data Availability: Data are commercially available.
- DOI
- 10.2308/accr-50437
- Volume
- 88
- Issue
- 4
- Pages
- 1265-1287
- Language
- en
- Sources
- openalex bibtex:phds-export.bib crossref