Analyst Firm Coverage and Forecast Accuracy: The Effect of Regulation Fair Disclosure

doi:10.1111/abac.12120

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	Analyst Firm Coverage and Forecast Accuracy: The Effect of Regulation Fair Disclosure
	Dong, Yi 1; Hu, Nan 2; Li, Xu 3; Liu, Ling 4
刊名	ABACUS-A JOURNAL OF ACCOUNTING FINANCE AND BUSINESS STUDIES
	2017-12
卷号	53 期号:4 页码:450-484
关键词	Analyst portfolio Forecast accuracy Information complementarity Regulation FD
ISSN号	0001-3072
DOI	10.1111/abac.12120
英文摘要	In this study, we revisit the relationship between analyst firm coverage and forecast accuracy. In contrast to the proposed negative association in Clement (1999) owing to the portfolio complexity effect, we hypothesize an economy-of-scale effect' that is likely to dominate when analysts rely mostly on public information. In support of the latter effect, we find a positive association between firm coverage and forecast accuracy after the enactment of Regulation Fair Disclosure (Reg FD), which substantially reduces the flow of material private information to analysts. Such a result survives a battery of robustness analyses. We further show that, in the post-Reg FD period, covering more firms increases an analyst's probability of being selected as a star analyst in the subsequent year. Overall, our findings highlight the importance of the information environment in shaping the economic link between an analyst's firm coverage and forecast accuracy.
WOS研究方向	Business & Economics
语种	英语
出版者	WILEY
WOS记录号	WOS:000418066000002
内容类型	期刊论文
源URL	[http://10.2.47.112/handle/2XS4QKH4/826]
专题	上海财经大学
通讯作者	Dong, Yi
作者单位	1.Shanghai Univ Finance & Econ, Sch Accountancy, Shanghai, Peoples R China; 2.Stevens Inst Technol, Sch Business, Hoboken, NJ 07030 USA; 3.Univ Hong Kong, Dept Accounting, Hong Kong 10000, Hong Kong, Peoples R China; 4.Univ Wisconsin Eau Claire, Dept Accounting & Finance, Eau Claire, WI 54702 USA
推荐引用方式 GB/T 7714	Dong, Yi,Hu, Nan,Li, Xu,et al. Analyst Firm Coverage and Forecast Accuracy: The Effect of Regulation Fair Disclosure[J]. ABACUS-A JOURNAL OF ACCOUNTING FINANCE AND BUSINESS STUDIES,2017,53(4):450-484.
APA	Dong, Yi,Hu, Nan,Li, Xu,&Liu, Ling.(2017).Analyst Firm Coverage and Forecast Accuracy: The Effect of Regulation Fair Disclosure.ABACUS-A JOURNAL OF ACCOUNTING FINANCE AND BUSINESS STUDIES,53(4),450-484.
MLA	Dong, Yi,et al."Analyst Firm Coverage and Forecast Accuracy: The Effect of Regulation Fair Disclosure".ABACUS-A JOURNAL OF ACCOUNTING FINANCE AND BUSINESS STUDIES 53.4(2017):450-484.