Publication Type

Journal Article

Version

acceptedVersion

Publication Date

4-2024

Abstract

We study interdepartment knowledge sharing in an investment research setting where the benefits are potentially significant for the brokerage and the capital market, but so are the frictions impeding it. Using hand-collected data on equity analyst access to in-house debt research expertise, we find significant benefits to equity analysts in the form of improved ability to forecast cash flows and to anticipate credit rating downgrades. Moreover, we find evidence that access to management and research expertise underlie in-house debt analysts' capacity to generate information beneficial to equity analysts. Finally, these benefits exist only in the presence of a collaborative brokerage culture or debt-equity analyst collocation, consistent with these factors promoting knowledge sharing in the investment research industry.

Keywords

knowledge sharing, equity analysts, debt analysts, cash flow forecasts, credit ratings

Discipline

Accounting | Corporate Finance | Portfolio and Security Analysis

Research Areas

Corporate Governance, Auditing and Risk Management

Publication

Management Science

Volume

70

Issue

4

First Page

2427

Last Page

2446

ISSN

0025-1909

Identifier

10.1287/mnsc.2023.4809

Publisher

Institute for Operations Research and Management Sciences

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1287/mnsc.2023.4809

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