Document Type

Article

Date

1-1-2008

Keywords

financial analysts, analyst following, analyst forecasts, firm coverage

Language

English

Disciplines

Accounting

Description/Abstract

This paper explores the determinants of observed analyst-firm pairings. We adopt an analyst/brokerage house perspective that allows us to examine not only firm-level characteristics as in prior research, but also attributes of the analyst and the analyst’s brokerage house that may drive these pairings. Our empirical analyses provide two primary insights. First, analyst characteristics such as industry expertise and relative experience, and brokerage house characteristics such as continuity of coverage, are associated with the decision to follow a firm. Second, there is substantial variation in the association between firm, analyst, and brokerage house characteristics and the decision to follow a firm; this occurs across individual analysts as well as across different types of brokerage houses. Overall, our results provide further insights into the factors leading to observed analyst-firm pairings, and indicate that these factors vary across analysts and their brokerage houses – suggesting richer associations than the average firm-level relationships documented by prior research.

Additional Information

Copyright 2008 Journal of Accounting and Public Policy. This article may be downloaded for personal use only. Any other use requires prior permission of the author and Journal of Accounting and Public Policy. The article may be found at doi:10.1016/j.jaccpubpol.2008.06.001

Creative Commons License

Creative Commons Attribution 3.0 License
This work is licensed under a Creative Commons Attribution 3.0 License.

Included in

Accounting Commons

Share

COinS