Using a sample of Chinese security analysts’ recommendations from 2005 to 2010, we examine the source of analysts’ superiority and the investment value of their recommendations. Using a calendar-time portfolio approach, we find that, on average, analysts’ recommendations are valuable and...

After staggered mandatory interactions between Chinese listed firms and individual investors, which only allow listed firms to explain existing information, exogenously enhance individual investors’ information processing, our difference-in-differences analysis shows that these firms...