Analyst career concerns, effort allocation, and firms information environment

• Main Authors: HARFORD, Jarrad, JIANG, Feng, Rong WANG, XIE, Fei
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2019
• Subjects: Sell-side analysts; Effort allocation; Limited attention; Career concerns; Earnings forecast; Stock recommendation; Firm information environment; Labor market outcomes; Finance and Financial Management; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5960; https://ink.library.smu.edu.sg/context/lkcsb_research/article/6959/viewcontent/Analyst_Career_Concerns_2018_pp.pdf
• Institution: Singapore Management University

Analysts strategically allocate more effort to portfolio firms that are relatively more important to their careers. Thus, the other firms the analysts cover indirectly affect a firm’s information environment. Controlling for analyst and firm characteristics, we find that an analyst makes more accura...