The Value of Differing Points of View: Evidence from Financial Analysts’ Geographic Diversity

Autor:	William C Gerken, Marcus O Painter
Rok vydání:	2022
Předmět:	Economics and Econometrics Accounting Finance
Zdroj:	The Review of Financial Studies. 36:409-449
ISSN:	1465-7368 0893-9454
DOI:	10.1093/rfs/hhac033
Popis:	Using satellite imagery of retail firms’ parking lots to measure time-varying local firm-specific performance, we document that analysts incorporate local information into their forecasts. Analysts rely more on local signals when less firm-wide information is available. This incorporation of noisy local firm information has firm-level implications. Examining across industries, we find causal evidence that geographic concentration of analysts increases consensus forecast errors and decreases firm liquidity. These effects are stronger for harder-to-value stocks. The market values geographic firm information, as the abnormal return around forecast revisions is higher for analysts who cover a firm from a unique location.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::15a883a635379ef9e13ebe5e0cd2ea3a https://doi.org/10.1093/rfs/hhac033 Zobrazit plný text záznamu