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Final_Dissertation_to_ETD_Min_Chen.pdf (3.34 MB)

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LOSS OF ANALYST COVERAGE IN THE U.S. AND AROUND THE WORLD

CHEN, MIN
http://rave.ohiolink.edu/etdc/view?acc_num=kent1438005872

Abstract Details

2015, PHD, Kent State University, College of Business and Entrepreneurship, Ambassador Crawford / Department of Accounting.
This dissertation examines how analysts add value to companies in the context of loss and regaining of analyst coverage. It comprises of two essays. The first essay extends Mola, Rau and Khorana (MRK 2013) U.S. study, which examines effects of loss of earnings forecasts. This essay contributes to the literature by extending MRK article through testing the effect of loss of analysts' stock recommendations, loss of both earnings forecasts and stock recommendations and subsequent regaining of analyst coverage after the losses. The motivation and contribution of Essay II are fixated on extending Essay I in a global setting that examines whether the U.S. findings on loss and regaining of analyst coverage are robust in an international setting comprised of 84 countries. It further partitions the global setting into strong and weak investor protection countries and investigates whether the findings differ across these two regimes. Essay I shows that companies experience significant deterioration in investor interest after loss of analyst coverage (i.e. loss of stock recommendations, loss of earnings forecasts, or loss of both earnings forecasts and stock recommendations) in the U.S. However, the companies do not deteriorate in performance after the loss of analyst coverage. The results tend to be consistent with MRK findings on complete loss of analysts' earnings forecasts. Subsequent to the loss of analyst coverage, companies that successfully regain analyst coverage have better performance and greater investor interest than companies that fail to regain analyst coverage. Essay II finds that U.S. results are robust in the global context, specifically, companies experience significant deterioration in both investor interest and company performance after complete loss of analyst coverage. This finding may be caused by fewer regulations in other countries compared to recent regulations on analysts in the U.S.
Ran Barniv (Committee Co-Chair)
Wei Li (Committee Co-Chair)
Xiaoling Pu (Committee Member)
237 p.
Accounting
Analyst coverage; Company performance; Investor recognition; Corporate investment and financing

Recommended Citations

Citations

  • CHEN, M. (2015). LOSS OF ANALYST COVERAGE IN THE U.S. AND AROUND THE WORLD [Doctoral dissertation, Kent State University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=kent1438005872

    APA Style (7th edition)

  • CHEN, MIN. LOSS OF ANALYST COVERAGE IN THE U.S. AND AROUND THE WORLD . 2015. Kent State University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=kent1438005872.

    MLA Style (8th edition)

  • CHEN, MIN. "LOSS OF ANALYST COVERAGE IN THE U.S. AND AROUND THE WORLD ." Doctoral dissertation, Kent State University, 2015. http://rave.ohiolink.edu/etdc/view?acc_num=kent1438005872

    Chicago Manual of Style (17th edition)

kent1438005872
814
© 2015, all rights reserved.
This open access ETD is published by Kent State University and OhioLINK.