Review of Financial Studies Vol. 22 No. 5 2009
Financial Analysts' Performance: Sector versus Country Specialization
Abstract
[Brokerage houses normally structure their research activities along either country or sector lines. I investigate whether organizational structure affects the quality of financial analysts' earnings forecasts. Specifically, I compare the performance of country-specialized financial analysts with that of sector-specialized financial analysts. The former issue forecasts considerably more accurately than the latter. Country specialists benefit from an informational advantage over sector specialists. A superior knowledge of country-specific factors, as well as geographical proximity between analysts and the firms they cover, are significant determinants of this advantage.]
- Volume
- 22
- Issue
- 5
- Pages
- 2087-2131
- Sources
- bibtex:phds-export.bib