Alternative Title

Peer Learning in Equity Research

Publication Type

Conference Paper

Version

submittedVersion

Publication Date

10-2017

Abstract

We examine how learning from colleagues affects security analyst forecast outcomes. We represent the brokerage house as an information network of analysts connected through industry overlaps in their coverage portfolios. Analysts who are more centrally connected in their brokerage network produce more accurate forecast estimates and generate more influential forecast revisions. Consistent with learning, more central analysts tend to unwind their colleagues’ recent forecast errors in their forecast revisions. Learning appears to benefit all colleagues, as working at more interconnected brokerages (i.e., denser networks) improves forecast accuracy for all analysts.

Keywords

peer effects, networks, analysts, coworkers

Discipline

Finance | Finance and Financial Management

Research Areas

Finance

Publication

2017 Annual Meeting in Financial Management Association (FMA), Boston, October 11-14

Publisher

Singapore Press Holdings

City or Country

Boston

External URL

http://www.fmaconferences.org/Boston/AnalystLearning_FMA2017.pdf

Comments

FMA conference Refer to program on 14 Oct - Financial Analysts 2: http://fmaconferences.org/Boston/BostonProgram.htm

Additional URL

http://fmaconferences.org/Boston/BostonProgram.htm

Share

COinS