Do Analysts Cater to Investor Information Demand?
Presentation
Overview
Overview
Description
We extend the analyst following literature by investigating whether analysts cater their coverage to investor information demand. Results show that analyst following of a firm increases during the months in which the stock ticker experiences abnormal information demand from investors, while the association is negative for a one month lagged model. It implies that analysts contemporaneously respond to the information demand shock, but partially revert their coverage after the abnormal information demand disappears. Furthermore, our results suggest that analysts cater their coverage more towards institutional investors, relative to retail investors.
