The Research of Analysts’ Information Source: Empirical Evidence from A-Stock Market of China
Wu Xiang Emma Hao

Abstract
This paper use stock returns around and after recommendation changes to measure the information produced by analysts, we find that analysts prefer to firm-specific information, analysts produce more firm-specific information than industry-level information. The amount of firm-specific information on stocks produced by analysts increases with the higher idiosyncratic return volatilities. The amount of industry information on stocks produced by analysts decreases with the stock’s idiosyncratic return and increases with the absolute value of the stock’s industry beta. At the last of paper, using the results of research, we show how investor may use analyst research more effectively and improve their investment performance.

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