Analyst-Firm Relations and Reciprocity: Evidence from China

This paper quantifies the analyst-firm relations based on an informational characteristic-model of analyst coverage innovatively. Furtherly, the rationality of analyst-firm relations is investigated based on the reciprocity between analysts and target firms by examining the impact of analyst-firm re...

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Bibliographic Details
Published inE3S Web of Conferences Vol. 253; p. 3029
Main Authors Hou, Jianlei, Zhao, Shangmei, Yang, Haijun
Format Journal Article Conference Proceeding
LanguageEnglish
Published Les Ulis EDP Sciences 01.01.2021
Subjects
Empirical analysis
Forecasting
Impact analysis
Profits
Reciprocity
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Summary:This paper quantifies the analyst-firm relations based on an informational characteristic-model of analyst coverage innovatively. Furtherly, the rationality of analyst-firm relations is investigated based on the reciprocity between analysts and target firms by examining the impact of analyst-firm relations on stock recommendation and analysts’ earnings forecasting performance. Empirical results suggest that analysts are prompted by close analyst-firm relations to render relatively positive rating for target firms and reciprocated by more firm-specific information for better earnings forecasting performance.
ISSN:2267-1242
2555-0403
2267-1242
DOI:10.1051/e3sconf/202125303029