Topic: Getting Feedback on your Research: Evidence from Analysts
Speaker: Roger K. Loh，Associate Professor of Finance, Lee Kong Chian School of Business,
Singapore Management University
Location: Building 4, Room 101
We investigate how analysts learn about
the quality of their research from the stock-price reaction to their reports.
We find strong evidence that analysts who issue influential recommendation
changes in the current quarter are more likely to issue recommendation changes
next quarter. These future recommendation changes are also more likely to be
influential. In cross-sectional tests, we find that these feedback effects are
driven by an information channel where capacity constrained analysts quickly
translate the information in the successful report onto other firms; and a
skill channel where analysts update their priors about their skill from the
market’s endorsement of their research.
About the speaker:
Roger K. Loh is an Associate Professor of Finance at Lee Kong Chian School of Business, Singapore Management University. He received Bachelor and Master degrees from National University of Singapore, and Ph.D. degrees from Ohio State University. His research interests include security analysts, empirical asset pricing and behavioral finance. His research has been published in the Review of Financial Studies and Journal of Financial Economics.