Do analysts generate trade for their "rms? Evidence from the Toronto stock exchange
نویسنده
چکیده
It has generally been assumed that the potential commission revenue is an important determinant of a sell-side analyst's decision of what "rms to cover and what information to publicly release. However, because stock volume has not been disaggregated on a brokerage-"rm level, uncertainty remains regarding the economic importance of the relation between analyst coverage and brokerage-"rm volume. Using a unique data set that identi"es the broker(s) involved in each trade, I "nd that brokerage volume is signi"cantly higher in covered stocks than in uncovered stocks. On average, brokers increase their market share in covered stocks by 3.8% relative to uncovered stocks. 2001 Elsevier Science B.V. All rights reserved. JEL classixcation: G24; G14
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