We study the effect of analyst coverage on firms' innovation strategy and outcome. By considering three different … negative effect becomes not significant when firms' in-house R&D spending and external innovation channels are taken into … account. We find that more financial analysts encourage firms to make more efficient investments related to innovation, which …

How analyst coverage may affect corporate innovation remains unclear. We suggest that when the manager is myopic due to … pressure from financial analysts and decides to reduce innovation, the firm should retain better innovation projects and forego …

We examine the effects of financial analysts on the real economy in the case of innovation. Our baseline results show … of analyst coverage on firm innovation. The evidence is consistent with the hypothesis that analysts exert too much … possible underlying mechanisms through which analysts impede innovation and show that there is a residual effect of analysts on …

that analysts spur product innovation, and that the timing of firms' response varies by the significance of innovation …

with more analyst-based connections to peers also show greater corporate innovation. Collectively, our evidence indicates …