Private Interaction Between Firm Management and Sell‐Side Analysts

Soltes, Eugene F.

doi:10.2139/ssrn.1995559

Cited by 74 publications

(121 citation statements)

References 24 publications

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“…We also asked analysts about the benefits of being an II All‐Star. One analyst described it as “your external stamp of approval” and, consistent with prior research, said that, because the II results are visible to outsiders, “Your access to management teams is greatly increased by your II ranking” (Mayew [], Soltes []). Another said, “The II rankings…give you significant leverage within your own firm” because II‐ rated analysts can easily find employment elsewhere.…”

Section: Results and Interview Responsesmentioning

confidence: 90%

“…Our findings shed light on the value of private communication with management as an input to analysts’ decision processes. Soltes [] finds that private communication with management is a valuable source of information for analysts. We extend Soltes [] by providing evidence that over half of the analysts we survey report that they have direct contact with the CEO or CFO of the typical company they follow five or more times a year.…”

Section: Introductionmentioning

confidence: 99%

“…Soltes [] finds that private communication with management is a valuable source of information for analysts. We extend Soltes [] by providing evidence that over half of the analysts we survey report that they have direct contact with the CEO or CFO of the typical company they follow five or more times a year. We also find that private communication with management is a more important input to analysts’ earnings forecasts and stock recommendations than primary research, recent earnings performance, and recent 10‐K and 10‐Q reports.…”

Section: Introductionmentioning

confidence: 99%

“…Some of our findings strengthen the extant literature. For example, Soltes [] uses field evidence from a single large‐cap firm to show that private communication with management is valuable to sell‐side analysts. We validate this finding with a broad sample of analysts following many firms from multiple industries and add context by assessing the value of private communication relative to other inputs analysts employ.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Inside the “Black Box” of Sell‐Side Financial Analysts

Brown

Call

Clement

et al. 2015

J of Accounting Research

955

491

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Our objective is to penetrate the "black box" of sell-side financial analysts by providing new insights into the inputs analysts use and the incentives they face. We survey 365 analysts and conduct 18 follow-up interviews covering a wide range of topics, including the inputs to analysts' earnings forecasts and stock recommendations, the value of their industry knowledge, the determinants of their compensation, the career benefits of Institutional Investor All-Star status, and the factors they consider indicative of high-quality earnings. One important finding is that private communication with management is a more useful input to analysts' earnings forecasts and stock recommendations than their own primary research, recent earnings performance, and

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Section: Results and Interview Responsesmentioning

confidence: 90%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Inside the “Black Box” of Sell‐Side Financial Analysts

Brown

Call

Clement

et al. 2015

J of Accounting Research

955

491

View full text Add to dashboard Cite

show abstract

“…Soltes [] demonstrates the value of collecting records to capture theoretical constructs. He conducts a field study to test a variety of theories about when analysts meet privately with managers of a large publicly traded firm.…”

Section: Data Gathering Choices Within Methodsmentioning

confidence: 99%

Gathering Data for Archival, Field, Survey, and Experimental Accounting Research

Bloomfield

Nelson

Soltes

2016

J of Accounting Research

215

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In the published proceedings of the first Journal of Accounting Research Conference, Vatter [1966] lamented that “Gathering direct and original facts is a tedious and difficult task, and it is not surprising that such work is avoided.” For the fiftieth JAR Conference, we introduce a framework to help researchers understand the complementary value of seven empirical methods that gather data in different ways: prestructured archives, unstructured (“hand‐collected”) archives, field studies, field experiments, surveys, laboratory studies, and laboratory experiments. The framework spells out five goals of an empirical literature and defines the seven methods according to researchers’ choices with respect to five data gathering tasks. We use the framework and examples of successful research studies in the financial reporting literature to clarify how data gathering choices affect a study's ability to achieve its goals, and conclude by showing how the complementary nature of different methods allows researchers to build a literature more effectively than they could with less diverse approaches to gathering data.

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Corporate site visits and financial report quality

Dao

Sun

2022

J Corp Accounting Finance

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This study examines the association between corporate site visits and visited firms’ financial reporting quality. Using a sample of publicly listed firms in China for the years 2009 through 2018 and four different measures of financial reporting quality, we find that firms receiving more site visits have higher financial reporting quality. Specifically, we find that corporate site visits are associated with a lower level of accrual‐based earnings management and a lower likelihood of financial violations and financial restatements. Moreover, we document a positive association between corporate site visits and the evaluation of earnings disclosure quality. We also find some evidence that the positive association between site visits and financial reporting quality is more pronounced among firms with greater institutional ownership and among state‐owned enterprises. Taken together, our findings underscore the monitoring role of corporate site visits in enhancing visited firms’ financial reporting quality. This research could be of interest to regulators and institutional investors by providing insight into assessing the benefits of selective access events that may influence the quality of financial reports.

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Private Interaction Between Firm Management and Sell‐Side Analysts

Cited by 74 publications

References 24 publications

Inside the “Black Box” of Sell‐Side Financial Analysts

Inside the “Black Box” of Sell‐Side Financial Analysts

Gathering Data for Archival, Field, Survey, and Experimental Accounting Research

Corporate site visits and financial report quality

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