Information Sharing and Spillovers: Evidence from Financial Analysts

In one sentence

High-skill finance professionals owe much of their success to the colleagues that surround them.

Summary

We study information sharing within brokerages, focusing on analysts covering M&As. We find that forecasts for the merged firm are much more accurate when the analyst has a colleague covering the target prior to the M&A, especially when teams are small or the colleague covering the target is of high quality.

Research topics