What is the value of sell-side analysts? Evidence from coverage changes – A discussion

Content Provider	Semantic Scholar
Author	Hansen, Robert S.
Copyright Year	2015
Abstract	Li and You (this volume) study public firms’ common stock return reactions to two events: when analysts’ initiate coverage of the firm and when they terminate coverage. They test the returns for evidence of three sources of value added by analysts: (1) more monitoring of the firm, (2) reduced information asymmetry about the firm, and (3) greater demand for the firm’s common stock. They find consistent support for analysts adding value by increasing demand, but not monitoring or by reducing information asymmetry. Their findings also indicate that analysts’ initiations supply little new information. I review these findings, put them in perspective with related research, and note research directions.
Starting Page	58
Ending Page	64
Page Count	7
File Format	PDF HTM / HTML
DOI	10.1016/j.jacceco.2015.08.005
Volume Number	60
Alternate Webpage(s)	http://www.tulane.edu/~rsweb/Hansen,%20JAE,2015.pdf
Alternate Webpage(s)	https://doi.org/10.1016/j.jacceco.2015.08.005
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article