Soft Information in the Financial Press and Analyst Revisions

2020 ◽  
Author(s):  
Mark T Bradshaw ◽  
Brandon Lock ◽  
Xue Wang ◽  
Dexin Zhou
Keyword(s):  
Soft Information ◽  
Financial Press

Soft Information in the Financial Press and Analyst Revisions

2020 ◽  
Author(s):  
Mark T. Bradshaw ◽  
Brandon Lock ◽  
Xue Wang ◽  
Dexin Zhou
Keyword(s):  
Capital Markets ◽  
Media Coverage ◽  
Instrumental Variable ◽  
News Coverage ◽  
Soft Information ◽  
Experimental Setting ◽  
Market Reactions ◽  
Information Intermediaries ◽  
The Media ◽  
Financial Press

Both sell-side analysts and the media are information intermediaries in capital markets. This study investigates the association between sell-side analyst research and information in firm-specific news coverage. More frequent recent news coverage is associated with stronger market reactions to analysts' research revisions, and primarily explained by soft information in news coverage. The primary result is robust to using both an instrumental variable and a quasi-natural experimental setting to generate exogenous variation in media coverage, alleviating concerns about endogeneity. In addition, using textual analysis, we document that explicit media references in analyst research reports are significantly associated with more frequent analyst revisions and stronger market reactions to revisions. Our study provides empirical evidence of analysts' assimilation of information from the financial press and their role in the efficiency of capital markets.

The Financial Press in California

1953 ◽  
Vol 9 (3) ◽  
pp. 103-103
Author(s):  
John G. Eidell
Keyword(s):  
Financial Press
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