When Do Sell†side Analyst Reports Really Matter? Shareholder Protection, Institutional Investors and the Informativeness of Equity Research

Daniel Arand, Alexander Kerl and Andreas Walter

European Financial Management, 2015, vol. 21, issue 3, 524-555

Abstract: We examine whether the informativeness of sell†side analyst reports depends on the strength of the regulatory environment of a country and the regulatory background of the institutional investors of a company. Based on both measures that we use to proxy the informativeness of analyst research (i.e., short†term market reaction and forecast errors with respect to corporate earnings), our results show that the information value of research increases as the level of investor protection increases. This result is robust to different specifications of investor protection. We further demonstrate that analyst forecasts are more (less) valuable when the majority of institutional investors are from strong (weak) investor protection countries.

Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://doi.org/10.1111/j.1468-036X.2013.12028.x

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:eufman:v:21:y:2015:i:3:p:524-555

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1354-7798

Access Statistics for this article

European Financial Management is currently edited by John Doukas

More articles in European Financial Management from European Financial Management Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().