Applying the framework of conditional event studies shows that equity issues reveal managers' private information about stock mispricing, which investors only partially discount into stock prices at the seasoned equity offering (SEO) announcement date. Negative abnormal returns occur as prices...

We document that Algorithmic Traders (ATs) reduce analysts' stock coverage and the number of analyst research reports. This evidence reflects that ATs pre-empt trades on new information, which reduces non-AT investment-driven demand for analyst research. Consistently, the effects we document...

We document that analysts cater to short-term investors by issuing optimistic target prices. Catering dominates among analysts at brokers without an investment banking arm as they face lower reputational cost. The market does not see through the analyst catering activity and their forecasts lead...

In contrast to the disappearing dividends view, we predict that variability in dividend payments increases investor demand for dividend information and analysts respond to this demand by producing informative dividend forecasts. We examine dividend payers from 16 countries spanning 2000–2013...

We use the COVID-19 pandemic to examine how this tail risk event affected analysts research production and their information intermediation role. Analysts markedly increase their research activity in the initial months of the pandemic: the number of quarterly earnings forecasts increases by 72%,...

We document that the quality of public and private information available to investors improves before seasoned equity offerings (SEO) but deteriorates shortly thereafter. As firms improve their financial communication, analyst earnings forecasts become more accurate and less biased. However,...

Using the SEC's Tick Size Pilot experiment, we examine the causal relation between the intensity of trades by high frequency traders (HFTs) and analyst research production. We propose that HFTs pre-empt other investors' trades, which lowers non-HFTs' profitability of trades on analyst reports...