Do local analysts know more ? A cross-country study of the performance of local analysts and foreign analysts

  title={Do local analysts know more ? A cross-country study of the performance of local analysts and foreign analysts},
  author={Kee-Hong Bae and Ren{\'e} M. Stulz and Hongping Tan},
This paper examines whether analysts resident in a country make more precise earnings forecasts for firms in that country than non-resident analysts. Using a sample of 32 countries, we find an economically and statistically significant local analyst advantage even after controlling for firm and analyst characteristics. The local advantage is high in countries where earnings are smoothed more, less information is disclosed by firms, and firm idiosyncratic information explains a smaller fraction… CONTINUE READING
Highly Cited
This paper has 80 citations. REVIEW CITATIONS

From This Paper

Figures, tables, and topics from this paper.
61 Citations
24 References
Similar Papers


Publications citing this paper.

81 Citations

Citations per Year
Semantic Scholar estimates that this publication has 81 citations based on the available data.

See our FAQ for additional information.


Publications referenced by this paper.
Showing 1-10 of 24 references

Trying to explain home bias in equities and consumption

  • K K
  • Journal of Financial Economics
  • 1999
Highly Influential
11 Excerpts

foreign investors in Korea

  • M B.
  • Review of Financial Studies
  • 1999
Highly Influential
9 Excerpts

Information footholds: expatriate analysts in an emerging market

  • C. Chang
  • Unpublished working paper. Haas School of…
  • 2003
Highly Influential
3 Excerpts

Do foreigners invest less in poorly governed firms

  • R. La Porta, F. Lopez-de-Silanes, A. Shleifer, R. W. Vishny
  • Law and Finance. Journal of Political Economy
  • 1998
Highly Influential
7 Excerpts

International portfolio investment flows

  • M. J. Brennan, H. H. Cao
  • Journal of Finance
  • 1997
Highly Influential
3 Excerpts

Look at me now: What attracts U.S. shareholders? Unpublished working paper

  • J. Ammer, S. B. Holland, D. C. Smith, F. E. Warnock
  • Unpublished working paper
  • 2006

The economic consequences of increased disclosure: Evidence from international cross-listings

  • W. 404-428. Bailey, G. A. Karolyi, C. Salva
  • Journal of Financial Economics
  • 2006
1 Excerpt

Financial analyst characteristics and herding behavior in forecasting

  • M. B. Clement, S. Y. Tse
  • Journal of Finance
  • 2005
1 Excerpt

Similar Papers

Loading similar papers…