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
Citation
PHUA, Kenny; THAM, T. Mandy; and WEI, Chi Shen.
Do security analysts learn from their colleagues?. (2017). 2017 Annual Meeting in Financial Management Association (FMA), Boston, October 11-14.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/6580
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
http://fmaconferences.org/Boston/BostonProgram.htm
Comments
FMA conference Refer to program on 14 Oct - Financial Analysts 2: http://fmaconferences.org/Boston/BostonProgram.htm