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Sell-side financial analyst social network and forecast accuracy

Author

Listed:
  • Li, Mengjia
  • Ding, Wenjie
  • Li, Hao
  • Wang, Qingwei
  • Xiao, Jason Zezhong

Abstract

Based on a unique dataset in China from 2012 to 2021, we find that sell-side financial analysts' social network improves analysts' forecast accuracy. Specifically, we find that analysts with a more central position in social networks based on corporate site visits generally have more face-to-face opportunities to learn from their peers, significantly improving their forecast performance. Such a social learning effect exists when more influential peers attend corporate site visits and when forecasted firms with higher information uncertainty.

Suggested Citation

  • Li, Mengjia & Ding, Wenjie & Li, Hao & Wang, Qingwei & Xiao, Jason Zezhong, 2025. "Sell-side financial analyst social network and forecast accuracy," International Review of Economics & Finance, Elsevier, vol. 103(C).
    • Handle: RePEc:eee:reveco:v:103:y:2025:i:c:s1059056025006641
    DOI: 10.1016/j.iref.2025.104501
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    Keywords

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    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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