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Article Dans Une Revue Journal of Finance Année : 2013

The Real Effects of Financial Shocks: Evidence from Exogenous Changes in Analyst Coverage

Résumé

We study the causal effects of analyst coverage on corporate investment and financing policies. We hypothesize that a decrease in analyst coverage increases information asymmetry and thus increases the cost of capital; as a result, firms decrease their investment and financing. We use broker closures and broker mergers to identify changes in analyst coverage that are exogenous to corporate policies. Using a difference-in-differences approach, we find that firms that lose an analyst decrease their investment and financing by 1.9% and 2.0% of total assets, respectively, compared to similar firms that do not lose an analyst.

Dates et versions

hal-00852356 , version 1 (20-08-2013)

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Citer

François Derrien, Ambrus Kecskés. The Real Effects of Financial Shocks: Evidence from Exogenous Changes in Analyst Coverage. Journal of Finance, 2013, 68 (4), pp.1407-1440. ⟨10.1111/jofi.12042⟩. ⟨hal-00852356⟩

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