A study of analyst-run mutual funds: The abilities and roles of buy-side analysts

Cici, Gjergji; Rosenfeld, Claire M.

doi:10.1016/j.jempfin.2015.12.004

Cited by 8 publications

(2 citation statements)

References 32 publications

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“…First, we open the door to a new avenue of research that can investigate the role of the bilateral flow of information between sell-and buy-side analysts in increasing the quality of information impounded in capital asset prices. Second, by furthering our understanding of the role that buy-side analysts play in financial markets, our paper contributes to the nascent literature that studies buy-side analysts (e.g., Jung, Wong, and Zhang 2017, Brown, et al 2016, Cici & Rosenfeld 2016, Rebello & Wei 2014. We identify a channel through which buy-side analysts' private information flows to the stock market.…”

Section: Introductionmentioning

confidence: 76%

Do Connections with Buy-Side Analysts Inform Sell-Side Analyst Research?

2017

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Abstract:We hypothesize that connections with buy-side analysts provide a sell-side analyst with private information generated by the buy-side that enhances the quality of sell-side research. We proxy for these connections with the number of stocks at the intersection of stocks held in the portfolios of institutional investors and followed by the sell-side analyst. The larger this intersection, the more opportunities the sell-side analyst has to interact with institutional investors. We proxy for the research quality of the sell-side analyst with the relative accuracy of her earnings forecasts. We find that such connections enhance the accuracy of earnings forecasts, but up to a point of diminishing returns. Additional tests rule out that the observed association is due to reverse causality.

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Section: Introductionmentioning

confidence: 76%

Do Connections with Buy-Side Analysts Inform Sell-Side Analyst Research?

2017

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“…Third, by furthering our understanding of the role that buy-side analysts play in financial markets, our paper contributes to the literature that studies buy-side analysts (e.g., Brown et al, 2016;Cici & Rosenfeld, 2016;Jung et al, 2018;Rebello & Wei, 2014). By using a large sample and archival data, we complement the current literature relying on survey data or private datasets and, by doing so, deepen the understanding of channels through which buy-side analysts' private information flows to the stock market.…”

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confidence: 75%

Do buy‐side analysts inform sell‐side analyst research?

Cici,

Shane,

Yang

2023

Accounting & Finance

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This paper examines whether sell‐side analysts' interactions with buy‐side analysts influence the quality of sell‐side research output. We hypothesise that these interactions offer the sell side a view of the buy side's private information, which enhances the quality of sell‐side research. Our findings show that analyst earnings forecast accuracy improves with these interactions with diminishing returns. Results are robust to alternative proxies for research quality and information flow from buy‐side to sell‐side analysts. Additional tests rule out endogeneity concerns, strengthening the inference that feedback from interactions with buy‐side analysts improves the quality of sell‐side research output.

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