Sell-Side School Ties

被引:496
作者
Cohen, Lauren [1 ,2 ]
Frazzini, Andrea [2 ,3 ]
Malloy, Christopher [1 ]
机构
[1] Harvard Univ, Sch Business, Cambridge, MA 02138 USA
[2] NBER, Cambridge, MA 02138 USA
[3] Univ Chicago, Grad Sch Business, Chicago, IL 60637 USA
关键词
ANALYST RECOMMENDATIONS; EARNINGS FORECASTS; SECURITY ANALYSTS; CAREER CONCERNS; REGULATION FD; SMALL WORLD; INVESTMENT; PERFORMANCE; STOCK; RETURNS;
D O I
10.1111/j.1540-6261.2010.01574.x
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
We study the impact of social networks on agents' ability to gather superior information about firms. Exploiting novel data on the educational background of sell-side analysts and senior corporate officers, we find that analysts outperform by up to 6.60% per year on their stock recommendations when they have an educational link to the company. Pre-Reg FD, this school-tie return premium is 9.36% per year, while post-Reg FD it is nearly zero. In contrast, in an environment that did not change selective disclosure regulation (the U.K.), the school-tie premium is large and significant over the entire sample period.
引用
收藏
页码:1409 / 1437
页数:29
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