Determinants of sell‐side financial analysts’ use of non‐financial information
Year: 2010
Type: article
Study design: Observational Study
Abstract: This paper aims to research the context within which sell‐side financial analysts make decisions to use corporate non‐financial information. Prior research has demonstrated that financial analysts take into account non‐financial information in their analyses of firms, but knowledge is scarce about what determines their use of this information. Based on a survey conducted among Belgian financial analysts, we observe a significant negative association between the financial analysts’ use of non‐financial information and the earnings informativeness of a firm's financial statement information proxied by leverage and stock return volatility. We also find that a higher amount of non‐financial information is used by less experienced financial analysts and by financial analysts covering a higher number of firms.
Source: Accounting and Business Research
Authors: Raf Orens, Nadine Lybaert
Institutions: UCLouvain, KU Leuven, Hasselt University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2008448662