Do Local Analysts Know More? A Cross-Country Study of the Performance of Local Analysts and Foreign Analysts

@article{Bae2005DoLA,
  title={Do Local Analysts Know More? A Cross-Country Study of the Performance of Local Analysts and Foreign Analysts},
  author={Kee-Hong Bae and H. Tan and Ren{\'e} M. Stulz},
  journal={Financial Accounting},
  year={2005}
}
  • Kee-Hong Bae, H. Tan, René M. Stulz
  • Published 2005
  • Financial Accounting
  • This paper examines whether analysts resident in a country make more precise earnings forecasts for firms in that country than analysts who are not resident in that country. Using a sample of 32 countries, we find that there is an economically and statistically significant analyst local advantage even after controlling for firm and analyst characteristics. The importance of the local advantage is inversely related to the quality of the information provided by firms. In particular, the local… CONTINUE READING
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