Publication Type
Journal Article
Version
publishedVersion
Publication Date
8-2022
Abstract
We identify a specific organizational resource in brokerage housesdinformation sharing among analyst colleagues who cover economically related industries along a supply chain. After controlling for brokerage selection effects, we show evidence consistent with the benefit of this resource to analyst research performance. Specifically, we find that analysts whose colleagues cover more economically connected industries have better research performance, especially when their colleagues produce higher-quality research. We further show that colleagues' coverage of downstream (upstream) industries is positively related to the accuracy of only analysts' revenue (expense) forecasts and that analysts and their highly connected colleagues tend to issue earnings forecast revisions contempora-neously. Last, we find that analysts with economically connected colleagues tend to have a higher level of industry specialization. Overall, our findings suggest that analysts rely on organizational resources to produce high-quality research. Hence, a portion of their per-formance and reputation is not transferable across employers.
Keywords
Financial analyst, information sharing, economically connected industries, supply chain, analyst performance, industry specialization
Discipline
Accounting | Portfolio and Security Analysis
Publication
Journal of Accounting and Economics
Volume
74
Issue
1
First Page
1
Last Page
20
ISSN
0165-4101
Identifier
10.1016/j.jacceco.2022.101496
Publisher
Elsevier: 24 months
Citation
HUANG, Allen; LIN, An-Ping; and ZANG, Amy Y..
Cross-industry information sharing among colleagues and analyst research. (2022). Journal of Accounting and Economics. 74, (1), 1-20.
Available at: https://ink.library.smu.edu.sg/soa_research/2009
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.jacceco.2022.101496