We develop a new measure of innovation using a textual analysis of analyst reports of S&P500 firms. Our text-based measure gives a useful description of innovation by firms with and without patenting and R&D. For non-patenting firms, the measure identifies innovative firms that adopt novel...

I study how analysts' performance depends on their incentives using a regulatory shock and the textual content of analyst reports. My results focus on two aspects of performance, information production and bias. After incentives are reduced, analysts produce less information that is also less...