Do buy‐side analysts inform sell‐side analyst research?

Gjergji Cici, Philip B. Shane and Yanhua Sunny Yang

Accounting and Finance, 2024, vol. 64, issue 1, 657-691

Abstract: This paper examines whether sell‐side analysts' interactions with buy‐side analysts influence the quality of sell‐side research output. We hypothesise that these interactions offer the sell side a view of the buy side's private information, which enhances the quality of sell‐side research. Our findings show that analyst earnings forecast accuracy improves with these interactions with diminishing returns. Results are robust to alternative proxies for research quality and information flow from buy‐side to sell‐side analysts. Additional tests rule out endogeneity concerns, strengthening the inference that feedback from interactions with buy‐side analysts improves the quality of sell‐side research output.

Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/acfi.13158

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:acctfi:v:64:y:2024:i:1:p:657-691

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0810-5391

Access Statistics for this article

Accounting and Finance is currently edited by Robert Faff

More articles in Accounting and Finance from Accounting and Finance Association of Australia and New Zealand Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().