Firm characteristics and analyst following

doi:10.1016/0165-4101(89)90008-6

Journal of Accounting and Economics

Volume 11, Issues 2–3, July 1989, Pages 255-274

https://doi.org/10.1016/0165-4101(89)90008-6 Get rights and content

Abstract

This paper examines the major determinants of the number of analysts following a firm. A simple model of analyst following is proposed and several firm characteristics are suggested that are likely to influence the extent of a firm's analyst following by either affecting the aggregate demand for or supply of analyst services or both for the firm. Almost all of these characteristics are found to be strongly significant in affecting the extent of analyst following of firms and the empirical results generally accord well with economic intuition.

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^☆: This paper is based on Chapter 5 of my dissertation completed at the University of Chicago. I am grateful to the members of my committee, Bob Holthausen, Charlie Jacklin, Shmuel Kandel, Richard Leftwich, Rob Vishny, and especially to Doug Diamond, the chairman of the committee, for all their guidance and useful comments. I would also like to thank Bhagwan Chowdhry, Paul Healy, Gur Huberman, Pat O'Brien, Katherine Schipper, an anonymous reviewer, and the editor, Ray Ball, for many valuable comments and suggestions.

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Firm characteristics and analyst following☆

Abstract

Journal of Economic Theory

Journal of Business Research

Journal of Accounting and Economics

Journal of Accounting and Economics

Journal of Accounting and Economics

Journal of Financial Economics

Journal of Accounting and Economics

Journal of Accounting and Economics

Journal of Accounting and Economics

Journal of Economic Theory

Journal of Economic Theory

A noisy rational expectations equilibrium for multi-asset securities market

Econometrica

Predisclosure information, firm capitalization, and security price behavior around earnings announcements

Journal of Accounting Research

Collection of information about publicly traded firms: Theory and evidence

Journal of Accounting and Economics

Regression diagnostics: Identifying influential data and sources of collinearity