Ranking Analysts by Network Structural Hole

Re-Jin Guo, Yingda Lu and Lingling Xie

Chapter 31 in Handbook of Financial Econometrics, Mathematics, Statistics, and Machine Learning:(In 4 Volumes), 2020, pp 1211-1243 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This paper proposes a novel approach to rank analysts using their positions in a network constructed by peer analysts connected with overlapping firm coverage. We hypothesize that analysts occupying the network structural holes can produce higher quality equity research by a better access to their peer analysts’ wealth and diversity of information and knowledge. We report consistent empirical evidence that high-ranked analysts identified by network structural holes have greater ability to affect stock prices. Furthermore, those analysts tend to issue timely opinions, but not necessarily more accurate or consistent earnings forecasts. Analysts occupying structural holes tend to be more experienced, have a higher impact on stock prices when they work for large brokerages, and are rewarded with better career outcomes.

Keywords: Financial Econometrics; Financial Mathematics; Financial Statistics; Financial Technology; Machine Learning; Covariance Regression; Cluster Effect; Option Bound; Dynamic Capital Budgeting; Big Data (search for similar items in EconPapers)
JEL-codes: C01 C1 G32 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789811202391_0031 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789811202391_0031 (text/html)
Ebook Access is available upon purchase.

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:wsi:wschap:9789811202391_0031

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().