Access to Management and the Informativeness of Analyst Research
Publication Date
9-11-2012
Abstract
We examine whether access to management at broker-hosted investor conferences leads to more informative research by analysts. We find analyst recommendation changes have larger immediate price impacts when the analyst’s firm has a conference-hosting relationship with the company. The effect increases with hosting frequency and is strongest in the days following the conference. Conference-hosting brokers also issue more informative, accurate, and timely earnings forecasts than non-hosts. Our findings suggest that access to management remains an important source of analysts’ informational advantage in the post- Regulation Fair Disclosure world.
Document Type
Article
Keywords
Analyst Recommendations, Earnings Forecasts, Selective Disclosure, Conference Presentations
Disciplines
Accounting
DOI
10.2139/ssrn.2144543
Source
SMU Cox: Accounting (Topic)
Language
English
