Department/School
Accounting
Date of this version
2016
Document Type
Article
DOI
https://doi.org/10.1016/j.adiac.2016.12.003
Abstract
In this paper, we investigate the impact of firm strategy on the properties of analyst' information. We argue that analysts' total information (common and idiosyncratic information together) about a firm depends on how clearly evident the chosen strategy of a firm is. Second, we argue that financial analysts will see more opportunities for value addition in differentiators, and hence, will gravitate more towards such firms. Analysts add value by gathering private information and, thus, individual analyst's private information will be a greater percentage of total information for a firm pursuing a differentiation strategy than for a firm pursuing a cost leadership strategy. Our results confirm our hypotheses.
Volume
37
Published in
Advances in Accounting
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Citation/Other Information
Asdemir, O., Fernando, G. D., Schneible Jr., R. A., & Tripathy, A. (2017). Impact of strategy on analyst information. Advances in Accounting, 37, 103-110. https://doi.org/10.1016/j.adiac.2016.12.003