Skip to main content
Journal cover image

Equity analyst social interactions and geographic information transmission

Publication ,  Journal Article
Chen, Q; Mayew, WJ; Yan, H
Published in: Review of Accounting Studies
March 1, 2024

We find that earnings forecasts by analysts with more local peers, defined as analysts working in the same brokerage office who cover different firms headquartered in the same area, are more accurate. These heightened accuracy effects are concentrated in settings where local peers are particularly valuable, such as when analysts have less access to corporate management, when earnings are harder to forecast, and when analysts have stronger incentives to work hard. In examining the nature of the information transmitted by local peers, we find that earnings forecasts by analysts with more local peers better reflect negative geographic shocks in firm earnings. In addition, geographic momentum in stock returns is attenuated for firms that are followed by more local peers, especially when area returns are negative. These findings suggest that social interactions among local peer analysts facilitate the transmission of complex, soft information about geographic factors to investors.

Duke Scholars

Published In

Review of Accounting Studies

DOI

EISSN

1573-7136

ISSN

1380-6653

Publication Date

March 1, 2024

Volume

29

Issue

1

Start / End Page

327 / 353

Related Subject Headings

  • Accounting
  • 3501 Accounting, auditing and accountability
  • 1501 Accounting, Auditing and Accountability
 

Citation

APA
Chicago
ICMJE
MLA
NLM
Chen, Q., Mayew, W. J., & Yan, H. (2024). Equity analyst social interactions and geographic information transmission. Review of Accounting Studies, 29(1), 327–353. https://doi.org/10.1007/s11142-022-09714-z
Chen, Q., W. J. Mayew, and H. Yan. “Equity analyst social interactions and geographic information transmission.” Review of Accounting Studies 29, no. 1 (March 1, 2024): 327–53. https://doi.org/10.1007/s11142-022-09714-z.
Chen Q, Mayew WJ, Yan H. Equity analyst social interactions and geographic information transmission. Review of Accounting Studies. 2024 Mar 1;29(1):327–53.
Chen, Q., et al. “Equity analyst social interactions and geographic information transmission.” Review of Accounting Studies, vol. 29, no. 1, Mar. 2024, pp. 327–53. Scopus, doi:10.1007/s11142-022-09714-z.
Chen Q, Mayew WJ, Yan H. Equity analyst social interactions and geographic information transmission. Review of Accounting Studies. 2024 Mar 1;29(1):327–353.
Journal cover image

Published In

Review of Accounting Studies

DOI

EISSN

1573-7136

ISSN

1380-6653

Publication Date

March 1, 2024

Volume

29

Issue

1

Start / End Page

327 / 353

Related Subject Headings

  • Accounting
  • 3501 Accounting, auditing and accountability
  • 1501 Accounting, Auditing and Accountability