Peer effects in equity research

We study the importance of peer effects among sell-side analysts who work at the same brokerage house, but cover different firms. By mapping the information network within each brokerage, we identify analysts who occupy central positions in their network. Central analysts incorporate more informatio...

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Main Authors:	PHUA, Kenny, THAM, T. Mandy, WEI, Chi Shen
Format:	text
Language:	English
Published:	Institutional Knowledge at Singapore Management University 2021
Subjects:	Peer effects; Analysts; Limited Attention; Networks Business and Corporate Communications
Online Access:	https://ink.library.smu.edu.sg/lkcsb_research/6947 https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=7946&context=lkcsb_research
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Institution:	Singapore Management University
Language:	English

id	sg-smu-ink.lkcsb_research-7946
record_format	dspace
spelling	sg-smu-ink.lkcsb_research-79462022-02-17T16:44:19Z Peer effects in equity research PHUA, Kenny THAM, T. Mandy WEI, Chi Shen We study the importance of peer effects among sell-side analysts who work at the same brokerage house, but cover different firms. By mapping the information network within each brokerage, we identify analysts who occupy central positions in their network. Central analysts incorporate more information from their coworkers and produce better research. Using shocks to network structures around brokerage mergers, we identify the influence of peer effects and the importance of industry expertise on analysts’ performance. A portfolio strategy that exploits the forecast revisions of central analysts earns up to 24% per annum. 2021-07-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/6947 https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=7946&context=lkcsb_research http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Peer effects; Analysts; Limited Attention; Networks Business and Corporate Communications
institution	Singapore Management University
building	SMU Libraries
continent	Asia
country	Singapore Singapore
content_provider	SMU Libraries
collection	InK@SMU
language	English
topic	Peer effects; Analysts; Limited Attention; Networks Business and Corporate Communications
spellingShingle	Peer effects; Analysts; Limited Attention; Networks Business and Corporate Communications PHUA, Kenny THAM, T. Mandy WEI, Chi Shen Peer effects in equity research
description	We study the importance of peer effects among sell-side analysts who work at the same brokerage house, but cover different firms. By mapping the information network within each brokerage, we identify analysts who occupy central positions in their network. Central analysts incorporate more information from their coworkers and produce better research. Using shocks to network structures around brokerage mergers, we identify the influence of peer effects and the importance of industry expertise on analysts’ performance. A portfolio strategy that exploits the forecast revisions of central analysts earns up to 24% per annum.
format	text
author	PHUA, Kenny THAM, T. Mandy WEI, Chi Shen
author_facet	PHUA, Kenny THAM, T. Mandy WEI, Chi Shen
author_sort	PHUA, Kenny
title	Peer effects in equity research
title_short	Peer effects in equity research
title_full	Peer effects in equity research
title_fullStr	Peer effects in equity research
title_full_unstemmed	Peer effects in equity research
title_sort	peer effects in equity research
publisher	Institutional Knowledge at Singapore Management University
publishDate	2021
url	https://ink.library.smu.edu.sg/lkcsb_research/6947 https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=7946&context=lkcsb_research
_version_	1745574993605951488

Peer effects in equity research

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