The information externality of paid analysts

Tsang, Albert1; Yoo, Jihye2

2023-12-01

10.1080/16081625.2023.2298919

ASIA-PACIFIC JOURNAL OF ACCOUNTING & ECONOMICS   影响因子和分区

1608-1625

2164-2257

Using a hand-collected dataset of paid analysts and their earnings forecasts, this study examines the role of paid analysts in capital markets. Paid analysts tend to make more accurate earnings forecasts for the industry counterparts of their paying companies, compared with their non-industry counterparts after they are paid for providing forecasting services. The positive effect of appointing a paid analyst on earnings forecast accuracy for non-paying companies in the same industry (relative to those not in the same industry) is stronger when the paying companies have a weaker information environment and for analysts who have less industry-specific knowledge. Together, the findings of this study support the conjecture that having access to the private information of paying companies creates a positive information externality that enhances paid analysts' earnings forecasting performance for non-paying companies.

Forecast analysts accuracy information externality

SSCI

英语

第一

Business & Economics

Business, Finance ; Economics

WOS:001132381300001

ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD

Web of Science

1.Southern Univ Sci & Technol, SUSTech Business Sch, Shenzhen, Peoples R China
2.Hong Kong Polytech Univ, Fac Business, Hong Kong, Peoples R China

Tsang, Albert,Yoo, Jihye. The information externality of paid analysts[J]. ASIA-PACIFIC JOURNAL OF ACCOUNTING & ECONOMICS,2023.

Tsang, Albert,&Yoo, Jihye.(2023).The information externality of paid analysts.ASIA-PACIFIC JOURNAL OF ACCOUNTING & ECONOMICS.

Tsang, Albert,et al."The information externality of paid analysts".ASIA-PACIFIC JOURNAL OF ACCOUNTING & ECONOMICS (2023).