Investment and access to external finance in Europe: Does analyst coverage matter?

Sébastien Galanti, Aurélien Leroy () and Anne-Gaël Vaubourg ()
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Aurélien Leroy: Larefi - Laboratoire d'analyse et de recherche en économie et finance internationales - UB - Université de Bordeaux
Anne-Gaël Vaubourg: CRIEF [Poitiers] - Centre de recherche sur l'intégration économique et financière - UP - Université de Poitiers = University of Poitiers

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Abstract: We aim to determine whether analyst coverage improves European firms' access to capital markets and investment. Based on a data set that includes firms from several European countries between 2000 and 2015, we implement a treatment effect estimate and an instrumental variables (IV) approach, in which the intensity of industry-level waves in coverage is used as an instrument for firm-level coverage. We show that analyst coverage is favorable to firms' debt and share issuance and their investment expenses. Our paper emphasizes the key role of financial analysts in improving European firms' financial conditions.

Date: 2022
New Economics Papers: this item is included in nep-ban and nep-cfn
Note: View the original document on HAL open archive server: https://hal.science/hal-03900604v1
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Related works:
Journal Article: Investment and access to external finance in Europe: Does analyst coverage matter? (2022)
Working Paper: Investment and access to external finance in Europe: Does analyst coverage matter? (2022)
Working Paper: Investment and access to external finance in Europe: Does analyst coverage matter? (2022)
Working Paper: Investment and access to external finance in Europe: Does analyst coverage matter? (2022)
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