Do analysts cater to investor information demand?

Purpose The purpose of the study is to examine whether analyst coverage responds changes in investor information demand for a firm and test certain or characteristics moderate this association. Design/methodology/approach authors model activeness (AA) as function institutional investors' demand, proxied by news readership on Bloomberg terminals retail Google Search Volume Index (GSVI). Additionally, take several steps mitigate concerns about reverse causality that may confound findings. Findings Results suggest analysts respond shocks, but partially revert their after shock subsides. Furthermore, results cater more towards investors than investors. Evidence also suggests are responsive interested firms with tech stock characteristics. Finally, find evidence specialist while generalist Originality/value first empirically extent which demand. This vital topic because one primary sources market participants. Understanding an analyst's motivation providing will help facilitate efficiency.