Competition and Bias

By Harrison G. Hong, Marcin T. Kacperczyk. 2010

482 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Sociology and Political Science

View Paper: https://www.semanticscholar.org/paper/1494cfe78a18ebe0797f500333a397e8b4217548

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Economics and Econometrics

In Sociology and Political Science

Citations in the corpus

Testing Asymmetric-Information Asset Pricing Models (2011, unknown): “39 Note that this natural experiment is quite distinct from Hong and Kacperczyk’s (2010). They focus on cases where both brokers covered a stock before the merger, as they are interested in the loss of competition among analysts as one of the premerger analysts is made redundant.”
A New Approach to Predicting Analyst Forecast Errors: Do Investors Overweight Analyst Forecasts? (2013, result): “Similarly, Hong and Kacperczyk (2010) compare analyst forecasts with Compustat earnings and cite signi cant data errors in reported IBES earings.”
Uncovering expected returns: Information in analyst coverage proxies (2017, unknown): “Together, the inference problems we highlight collectively add support for the approaches in Hong and Kacperczyk (2010) and Kelly and Ljungqvist (2012) that use exogenous shocks to analyst coverage to assess the impact of analysts on market outcomes. In a related study, Jung et al. (2015) use confer”
Analyst Coverage and Real Earnings Management: Quasi-Experimental Evidence (2014, methodology): “In addition, Hong and Kacperczyk (2010) demonstrate that the loss of coverage is unrelated to changes in firms’ characteristics across the merger date.”
The Dark Side of Analyst Coverage: The Case of Innovation (2013, unknown): “…first identification strategy is to rely on two plausible quasi - natural experiments , brokerage closures ( Kelly and Ljungqvist , 2011 , 2012 ) and brokerage mergers ( Hong and Kacperczyk , 2010 ) , that directly affect firms ' analyst coverage but are exogenous to their innovation productivity .”
Monitoring and Corporate Disclosure: Evidence from a Natural Experiment (2013, unknown): “…figures contain a higher amount of abnormal accruals, i.e., a bigger abnormal gap between 14 In unreported results, we also confirm the finding of Hong and Kacperczyk (2010) that the mergers result in an increase in the analyst forecast error variance associated with earnings per share…”
Before an Analyst Becomes an Analyst: Does Industry Experience Matter? (2015, unknown): “…exploit the loss of analyst coverage stemming from brokerage house mergers and closures as quasi-natural experiments to examine the impact of analysts on the functioning of financial markets (e.g., Hong and Kacperczyk, 2010; KL; Derrien and Kecskes, 2013; Derrien, Kecskes and Mansi, 2014).”
Do Analysts Matter for Governance? Evidence from Natural Experiments (2015, background): “Theory predicts that product market competition reduces managerial slack (for example, Jensen and Meckling, 1976; Hart, 1983; Holmström, 1982; Schmidt, 1997).”
Sticky Expectations and the Profitability Anomaly (2018, result): “We allow for a non-zero constant a, which will capture the fact that expectations might have a constant positive bias as found in the literature (see e.g. Hong and Kacperczyk (2010), Guedj and Bouchaud (2005), or Hong and Kubik (2003)).”