Analysts’ Industry Expertise and Synchronicity

• 발행기관: 한국회계정보학회
• 저자명: Jaeyon Chu Jinhan Pae
• 간행물 정보: 『한국회계정보학회 학술대회발표집』2019년 춘계학술대회 발표집, 113~150쪽, 전체 38쪽
• 주제분류: 경제경영 > 회계학
• 파일형태: PDF
• 발행일자: 2019.05.18

영문 초록

This study examines the relation between analysts’ industry knowledge and their earnings forecast accuracy. Using analysts’ promulgation of industry recommendations in their firm research report as a proxy for their industry knowledge or expertise, we find that analysts with industry knowledge predict earnings more accurately than those without such knowledge. However, the beneficial effect of industry knowledge on earnings forecast accuracy would not be uniform across firms. We conjecture that industry knowledge will be more relevant for firms whose performance is more synchronous with that of the industry. Consistent with the prediction, analysts with industry knowledge exhibit better earnings forecasting performance when they cover firms with high synchronicity with the industry. In contrast, we find no beneficial effect for firms with low synchronicity with the industry. We further find that industry knowledge spills over to other firms in the same industry, that is, to firms in the same industry for which analysts do not provide industry recommendations along with earnings forecasts.

목차

I. INTRODUCTION

II. RELATED LITERATURE AND HYPOTHESES DEVELOPMENT

III. SAMPLE

IV. RESEARCH DESIGN

V. EMPIRICAL RESULTS

VI. ADDITIONAL ANALYSES

VII. CONCLUSION

References

키워드

Analysts’ Earnings Forecast Accuracy Analysts’ Industry Knowledge Industry Expertise Industry Recommendation Stock Return Synchronicity Knowledge Spillover