This study investigates whether analysts strategically construct their portfolios along the supply chain. We document four major findings. First, the likelihood of an analyst following a firm's major customer increases with the strength of the economic tie along the supply chain, as measured by...

We document that the likelihood of an analyst following a supplier-customer firm pair increases with the strength of the economic ties along the supply chain, as measured by the percent of the supplier's sales to the customer. Analysts who follow a covered firm's customer provide more accurate...