Do Analysts Leak Information to Preferred Customers?
AbstractInspired by the recent debate in the financial press, we set out to investigate if financial analysts warn their preferred customers of possible earnings forecast revisions. The issue is explored by monitoring investors’ trading behavior during the weeks prior to analyst earnings forecast revisions, using the unique official stock transactions data set from Finland. In summary, we do not find evidence of large investors systematically being warned of earnings forecast revisions. However, the results indicate that the very largest investors show trading behavior partly consistent with being informed of future earnings forecast revisions.
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Bibliographic InfoPaper provided by Hanken School of Economics in its series Working Papers with number 505.
Length: 33 pages
Date of creation: 11 Jun 2004
Date of revision:
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Postal: Hanken School of Economics, Arkadiankatu 22, P.O.B. 479; FIN 00101 Helsinki, Finland
Phone: +358-9-431 331
Fax: +358-9-431 33 333
Web page: http://www.hanken.fi
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Financial analyst; information leakage; investor size;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-06-13 (All new papers)
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