所属栏目:资本市场/资产定价/2023/2023年第06期目录

The Bright Side of Analyst Coverage: Evidence From Stock Price Resilience During COVID-19
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发布日期:2023年03月08日 上次修订日期:2023年03月08日

摘要

How to shape a firm’s stock price resilience in the increasingly uncertain environment has become an important topic. This paper investigates the effect of important market participantsfinancial analysts-on stock price resilience. Based on data from 3,444 listed firms from China, we find that firms with higher analyst coverage are more resilient during the Covid-19 induced crisis, which is manifested by a lower pandemic-induced decline in stock price, shorter duration of decline period, higher recovery probability, and shorter duration of the recovery period after the shock. This positive relationship is more prominent for small firms but does not depend on ownership type, and the ratio of star analyst coverage. Further channel tests show that analysts could help in attracting attention from media and institutional investors, improving corporate governance, and reducing financial constraints, which in turn enhance the ability of stock prices to absorb pandemic shocks.
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Chao ZHANG; Xiaoxiao SONG; Cancan WANG The Bright Side of Analyst Coverage: Evidence From Stock Price Resilience During COVID-19 (2023年03月08日) http://www.cfrn.com.cn/dzqk/detail/14808

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