Analyst Workload and Information Production : Evidence from IPO Assignments

During quarters when analysts are working on IPOs, the accuracy, quantity, and timeliness of their research declines for the non-IPO firms that they cover at the same time. Consistent with increased workload reducing analyst information production, analyst forecasts during these periods deviate less from their own prior forecasts and the forecasts of their peers. The reduction in research quality is particularly large among less important portfolio firms, and for IPOs that would, in theory, attract more attention from analysts. Lastly, I provide evidence that the reduction in research quality from IPO-assigned analysts increases information asymmetry of covered firms