MS2025

The Use and Usefulness of Big Data in Finance: Evidence from Financial Analysts

Management Science 71, 4599-4621

In one sentence

Our study documents how our increasing reliance on big data and technology is reshaping the role of human labor in finance.

Summary

We show that analysts increasingly adopt alternative data. As they do so, they generate more accurate forecasts and their brokerages receive higher trading commissions, suggesting that investors value analyst adoption of alternative data.

Data, code & appendices

Please click here for the Online Appendix.

Research topics

alternative datafinancial analystsbig dataforecast accuracy