Do Analysts and Their Employers Value Access to Management? Evidence from Earnings Conference Call Participation

Cen, Ling; Chen, Jing; Dasgupta, Sudipto; Ragunathan, Vanitha

doi:10.1017/s0022109020000198

Cited by 32 publications

(7 citation statements)

References 50 publications

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“…9 Cen et al (2021) find that analysts who (are allowed to) speak earlier in the Q&A session of earnings calls are more successful in the labor market than are peers from the same brokerage when their brokerage firm closes.…”

Section: Analysts' Questions During Earnings Conference Callsmentioning

confidence: 99%

The Role of Gender in the Aggressive Questioning of CEOs During Earnings Conference Calls

Comprix

Lopatta

Tideman

2022

The Accounting Review

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We investigate the role of gender on the aggressiveness of sell-side analysts’ questions during earnings conference calls. Our tests reveal that the verbal aggressiveness of analysts’ questions is significantly associated with both the gender of the analyst asking the question and the gender of the CEO fielding the question. First, we find that male analysts are more verbally aggressive than female analysts. Specifically, male analysts’ questions are more direct and more likely to be followed with further questions, to have a preface statement, and to be negative, all of which are consistent with verbal aggressiveness. Second, male analysts’ questions to female CEOs are more aggressive than their questions to male CEOs. Gender-based verbal aggressiveness appears to be associated with analysts’ career trajectories: Female analysts who ask aggressive questions have a higher likelihood of becoming “star” analysts, whereas we fail to find such evidence for male analysts.

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Section: Analysts' Questions During Earnings Conference Callsmentioning

confidence: 99%

The Role of Gender in the Aggressive Questioning of CEOs During Earnings Conference Calls

Comprix

Lopatta

Tideman

2022

The Accounting Review

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“…Prior work suggests that analysts getting called upon to interact with management (or the first question) during the Q&A section of an earnings conference call may have better access to management given that the choice of analysts to ask questions (and their order) is controlled by the management of the hosting firm (e.g., Mayew, Sharp, and Venkatachalam (2013), Cen et al. (2021), Cohen, Lou, and Malloy (2020)). We collect the complete transcripts of earnings calls from Thomson StreetEvents and create two proxies for analyst access to management.…”

Section: Where Does the Value Of Trade Ideas Come From?mentioning

confidence: 99%

Are Analyst Short‐Term Trade Ideas Valuable?

Birru¹,

Gokkaya²,

LIU³

et al. 2022

The Journal of Finance

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Short-term trade ideas are a component of analyst research highly valued by institutional investors. Using a novel and comprehensive database, we find that trade ideas have a stock price impact at least as large as recommendation and target price changes. Trade ideas based on expectations of future events are more informative than those identifying incomplete incorporation of past information in stock prices. Analysts with better access to a firm's management produce better trade ideas. Institutional investors trade in the direction of trade ideas. Investors following trade ideas can earn significant abnormal returns, consistent with analysts possessing valuable short-term stock-picking skills.ON NOVEMBER 26, 2012, THE analyst following the common stock of Bank of America (BAC) at Guggenheim Securities made a tactical trading call suggesting that investors sell BAC over the next three months based on his expectation of the impact on BAC of the U.S. economy being pushed over fiscal cliffs. At the same time, the analyst reiterated his buy recommendation on BAC over a 12-month period based on his long-term investment thesis. Although the literature has raised concerns about analysts speaking with two tongues (e.g., Malmendier and Shantikumar (2014)), here we have an analyst issuing a trading sell on BAC for the near term even though he considers it a buy for the long term. 1 Issuing diverging stock opinions across different investment horizons is an accepted practice by the Financial Industry Regulatory Authority (FINRA), the self-regulatory organization of the securities industry, because doing so

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“…It has been well documented that analysts invest in relationships with corporate management (e.g., Brochet, Miller, and Srinivasan [2014]). In addition to additional sources of income (e.g., because of organizing road shows or broker-hosted conferences on behalf of a firm), access to management is an important information source for analysts' research and affects their forecasting performance and career prospects (Mayew [2008], Brochet, Miller, and Srinivasan [2014], Green et al [2014a], Cen et al [2021], Cohen, Lou, and Malloy [2020]). Thus, to maintain good relationships with corporate management, analysts also have a potential incentive to share industry information and competitive information.…”

Section: Financial Analysts As Sources Of Competitive Informationmentioning

confidence: 99%

Analyst Coverage Overlaps and Interfirm Information Spillovers

Martens

Sextroh

2021

J of Accounting Research

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We offer a novel perspective on the role of sell-side analysts as information intermediaries in capital markets by documenting a flow of information in a new direction, namely, from analysts to the firms they cover. We use analyst coverage overlaps and patent citations to examine analyst-induced information spillovers about technology and industry trends. Consistent with analyst coverage-related information flows, firms are more likely to cite another firm's patent if that firm is covered by the same analyst. The effect varies with analysts' specialization, experience, and level of activity. Firms with more analyst-based connections to peers also show greater corporate innovation.

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Do Analysts and Their Employers Value Access to Management? Evidence from Earnings Conference Call Participation

Cited by 32 publications

References 50 publications

The Role of Gender in the Aggressive Questioning of CEOs During Earnings Conference Calls

The Role of Gender in the Aggressive Questioning of CEOs During Earnings Conference Calls

Are Analyst Short‐Term Trade Ideas Valuable?

Analyst Coverage Overlaps and Interfirm Information Spillovers

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