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Analyst Research Activity During the COVID‐19 Pandemic

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  • Pawel Bilinski

Abstract

This paper documents that, in response to the COVID‐19 pandemic, analysts increase their research activity and significantly revise their forecasts when compared to the pre‐pandemic period. Uncertainty‐adjusted forecast errors are either comparable or smaller during the pandemic compared to the pre‐pandemic period. Investor attention and price reactions to analyst forecast revisions are higher during the pandemic and the effect is stronger in periods where investors actively search for information about firms. During the pandemic, investors value analyst price discovery role more than their role in interpreting public information. Jointly, the results suggest that analysts play an important information intermediation role during the COVID‐19 pandemic.

Suggested Citation

  • Pawel Bilinski, 2023. "Analyst Research Activity During the COVID‐19 Pandemic," Abacus, Accounting Foundation, University of Sydney, vol. 59(4), pages 1041-1073, December.
    • Handle: RePEc:bla:abacus:v:59:y:2023:i:4:p:1041-1073
    DOI: 10.1111/abac.12291
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