haku: @freeterm information asymmetry / yhteensä: 7
viite: 6 / 7
| Tekijä: | Bae, K-H. Stulz, R.M. Tan, H. |
| Otsikko: | Do local analysts know more? A cross-country study of the performance of local analysts and foreign analysts |
| Lehti: | Journal of Financial Economics
2008 : JUN, VOL. 88:3, p. 581-606 |
| Asiasana: | stock markets stocks earnings international forecasting |
| Vapaa asiasana: | analysts information asymmetry home bias |
| Kieli: | eng |
| Tiivistelmä: | It is examined in this paper if analysts resident in a country (here as: ctr./ctrs.) make more precise earnings forecasts for firms than non-resident analysts. Using a sample of 32 ctrs., there is found an economically and statistically significant local analyst (here as: l-a.) advantage even after controlling for firm and analyst characteristics. The l-a. advantage is high in ctrs. with earnings more smoothed, with less disclosed information by firms, and with firm idiosyncratic information explaining a smaller fraction of stock returns. It is negatively related to whether a firm has foreign assets and to market participation by foreign investors and by institutions, and positively related to holdings by insiders. The extent to which U.S. investors underweight a ctr.'s stocks is positively related to that ctr.'s l-a. advantage. |
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