Investment and access to external finance in Europe: Does analyst coverage matter?
Langue
EN
Article de revue
Ce document a été publié dans
International Review of Financial Analysis. 2022-03p. 102108
Résumé en anglais
We aim to determine whether analyst coverage improves European firms’ access to capital markets and investment. Based on a data set that includes firms from several European countries between 2000 and 2015, we implement a ...Lire la suite >
We aim to determine whether analyst coverage improves European firms’ access to capital markets and investment. Based on a data set that includes firms from several European countries between 2000 and 2015, we implement a treatment effect framework and an instrumental variables (IV) approach, in which the intensity of industry-level waves in coverage is used as an instrument for firm-level coverage. We show that analyst coverage is favorable to firms’ debt and share issuance and their investment expenses. Our paper emphasizes the key role of financial analysts in improving European firms’ financial conditions< Réduire
Mots clés en anglais
nvestment
debt issuance
share issuance
analyst
coverage
Unités de recherche