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Access to management and the informativeness of analyst research

Author

Listed:
  • Green, T. Clifton
  • Jame, Russell
  • Markov, Stanimir
  • Subasi, Musa

Abstract

We examine whether access to management at broker-hosted investor conferences leads to more informative research by analysts. We find analyst recommendation changes have larger immediate price impacts when the analyst׳s firm has a conference-hosting relation with the company. The effect increases with hosting frequency and is strongest in the days following the conference. Conference-hosting brokers also issue more informative, accurate, and timely earnings forecasts than non-hosts. Our findings suggest that access to management remains an important source of analysts׳ informational advantage in the post-Regulation Fair Disclosure world.

Suggested Citation

  • Green, T. Clifton & Jame, Russell & Markov, Stanimir & Subasi, Musa, 2014. "Access to management and the informativeness of analyst research," Journal of Financial Economics, Elsevier, vol. 114(2), pages 239-255.
    • Handle: RePEc:eee:jfinec:v:114:y:2014:i:2:p:239-255
    DOI: 10.1016/j.jfineco.2014.07.003
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    More about this item

    Keywords

    Analyst research; Investor conference; Earnings forecast; Regulation FD;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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