Peer effects among financial analysts
We hypothesize that the arrival of star analysts improves the performance of incumbent financial analysts, while the departure of star analysts has the opposite effect. Our results consistent with this hypothesis are concentrated primarily in the tests related to star arrivals. Our findings are robu...
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| Format: | Journal Article |
| Language: | English |
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2022
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| Online Access: | https://hdl.handle.net/10356/161531 |
| _version_ | 1811682479004712960 |
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| author | Do, Peter Truc Thuc Zhang, Huai |
| author2 | Nanyang Business School |
| author_facet | Nanyang Business School Do, Peter Truc Thuc Zhang, Huai |
| author_sort | Do, Peter Truc Thuc |
| collection | NTU |
| description | We hypothesize that the arrival of star analysts improves the performance of incumbent financial analysts, while the departure of star analysts has the opposite effect. Our results consistent with this hypothesis are concentrated primarily in the tests related to star arrivals. Our findings are robust to an instrumental variable approach and a falsification test. In addition, we hypothesize that the impact of the arrival/departure of star analysts is more pronounced when the star analyst covers the same industry as the incumbents (especially for industries with high uncertainty), when the star analyst is more established, when the incumbent analysts are less experienced, and when the brokerage house has fewer existing star analysts. Overall, our paper offers evidence of peer effects among financial analysts, mainly through the arrival of star analysts. |
| first_indexed | 2024-10-01T03:57:29Z |
| format | Journal Article |
| id | ntu-10356/161531 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T03:57:29Z |
| publishDate | 2022 |
| record_format | dspace |
| spelling | ntu-10356/1615312023-05-19T07:31:16Z Peer effects among financial analysts Do, Peter Truc Thuc Zhang, Huai Nanyang Business School Business::Finance Forecast Accuracy Career Concerns We hypothesize that the arrival of star analysts improves the performance of incumbent financial analysts, while the departure of star analysts has the opposite effect. Our results consistent with this hypothesis are concentrated primarily in the tests related to star arrivals. Our findings are robust to an instrumental variable approach and a falsification test. In addition, we hypothesize that the impact of the arrival/departure of star analysts is more pronounced when the star analyst covers the same industry as the incumbents (especially for industries with high uncertainty), when the star analyst is more established, when the incumbent analysts are less experienced, and when the brokerage house has fewer existing star analysts. Overall, our paper offers evidence of peer effects among financial analysts, mainly through the arrival of star analysts. Ministry of Education (MOE) Published version Zhang acknowledges the financial support from the Singapore Ministry of Education for providing research funding (RG75/16 and RG163/17). Do acknowledges the financial support from UQ Business School (BEL new staff start-up funds). 2022-09-06T08:23:21Z 2022-09-06T08:23:21Z 2020 Journal Article Do, P. T. T. & Zhang, H. (2020). Peer effects among financial analysts. Contemporary Accounting Research, 37(1), 358-391. https://dx.doi.org/10.1111/1911-3846.12523 0823-9150 https://hdl.handle.net/10356/161531 10.1111/1911-3846.12523 2-s2.0-85078792196 1 37 358 391 en RG75/16 RG163/17 Contemporary Accounting Research © 2020 Canadian Academic Accounting Association (CAAA). All rights reserved. This paper was published by Wiley in Contemporary Accounting and is made available with permission of Canadian Academic Accounting Association (CAAA). application/pdf |
| spellingShingle | Business::Finance Forecast Accuracy Career Concerns Do, Peter Truc Thuc Zhang, Huai Peer effects among financial analysts |
| title | Peer effects among financial analysts |
| title_full | Peer effects among financial analysts |
| title_fullStr | Peer effects among financial analysts |
| title_full_unstemmed | Peer effects among financial analysts |
| title_short | Peer effects among financial analysts |
| title_sort | peer effects among financial analysts |
| topic | Business::Finance Forecast Accuracy Career Concerns |
| url | https://hdl.handle.net/10356/161531 |
| work_keys_str_mv | AT dopetertructhuc peereffectsamongfinancialanalysts AT zhanghuai peereffectsamongfinancialanalysts |