Financial Analysts Cover which Firms?

Iranian Journal of Accounting, Auditing and Finance

مقاله 18، دوره 7، شماره 3 - شماره پیاپی 24، آبان 2023، صفحه 105-115   

نوع مقاله: Original Article

شناسه دیجیتال (DOI): 10.22067/ijaaf.2023.43638.1289

نویسنده

Javad Rajabalizadeh^*

Department of Accounting and Finance, Turku School of Economics University of Turku, Finland

چکیده

This study explores the primary factors influencing the number of analysts following a firm. The research sample comprises 11,459 non-U.S. firms, followed by various unique analysts during 2019 and 2020. The study proposes a straightforward model of analyst following, identifying several firm characteristics likely to affect the aggregate demand or supply of analyst services for a particular firm. A regression model tests the relationship between analyst following and high-technology firms (as proxied by R&D expenses) and firm size. The results reveal that, in the following year, analysts are more inclined to follow firms with a higher volume of R&D expenses and larger size in the current year. The study also uncovers that most control variables regarding firm characteristics significantly affect analyst following. In summary, the empirical results are consistent with economic intuition.

کلیدواژه‌ها

Financial Analysts؛ Firms’ Coverage؛ R&D؛ Size