首页|Do star analysts know more firm-specific information? Evidence from China
Do star analysts know more firm-specific information? Evidence from China
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NETL
NSTL
Elsevier
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 R~2 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.
star analyststock return synchronicityinformation productionforecast accuracy
Nianhang Xu、Kam C. Chan、Xuanyu Jiang、Zhihong Yi
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School of Business, Renmin University of China, Beijing 100872, China
Department of Finance, Gordon Ford College of Business, Western Kentucky University, Bowling Green, KY 42101, USA
NETL
NSTL
Elsevier
