Female Analysts’ Coverage and Stock Return Synchronicity
YI Zhihong, LI Ying, JIANG Xuanyu
School of Business, Renmin University of China; School of Accountancy, Shanxi University of Finance and Economics; School of Accountancy, Central University of Finance and Economics
Abstract:
The paper investigates the systematic differences between female analysts and male analysts when they producing firm-specific information, and gets three interesting findings. Firstly, a negative relationship is between female analyst coverage and stock return synchronicity. Secondly, the proportion of graduating from prestigious universities abroad in female analysts sample is higher than male analysts sample; female analysts put more effort than male in work; and both of the overseas background and the effort of female analysts have a negative relationship with stock return synchronicity. Thirdly, female analysts’ coverage can intensify the negative relationship between conservative forecasts and stock return synchronicity. The results above indicate that female analysts can produce more firm-specific information than male; there are three important factors (individual ability, effort level and personality characteristics) which leading them to do that. This paper has important implications for understanding the role of female analysts in the development of capital market such as China.
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