Cardiff University | Prifysgol Caerdydd ORCA
Online Research @ Cardiff 
WelshClear Cookie - decide language by browser settings

Can star analysts make superior coverage decisions in poor information environment?

Jin, Han, Mazouz, Khelifa ORCID:, Wu, Yuliang and Xu, Bin 2023. Can star analysts make superior coverage decisions in poor information environment? Journal of Banking and Finance 146 , 106650. 10.1016/j.jbankfin.2022.106650
Item availability restricted.

[thumbnail of star analysts_final_202208_clean.pdf] PDF - Accepted Post-Print Version
Restricted to Repository staff only until 24 February 2024 due to copyright restrictions.
Available under License Creative Commons Attribution Non-commercial No Derivatives.

Download (1MB)


This study uses the quality of coverage decisions as a new metric to evaluate the performance of star and non-star analysts. We find that the coverage decisions of star analysts are better predictors of returns than those of non-star analysts. The return predictability of star analysts’ coverage decisions is stronger for informationally opaque stocks. We further exploit the staggered short selling deregulations, Google's withdrawal, and the anti-corruption campaign as three quasi-natural experiments that create plausibly exogenous variations in the quality of information environment. These experiments show that the predictive power of star analysts’ coverage decisions strengthens (weakens) following a sharp deterioration (improvement) in firms’ information environment, consistent with the notion that star analysts possess superior ability to identify mispriced stocks. Overall, star analysts make better coverage decisions and play a superior role as information intermediaries, especially in poor information environment.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Publisher: Elsevier
ISSN: 0378-4266
Date of First Compliant Deposit: 30 August 2022
Date of Acceptance: 21 August 2022
Last Modified: 02 Nov 2022 19:54

Actions (repository staff only)

Edit Item Edit Item


Downloads per month over past year

View more statistics