Investment and access to external finance in Europe: Does analyst coverage matter?
Language
EN
Article de revue
This item was published in
International Review of Financial Analysis. 2022-03p. 102108
English Abstract
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 ...Read more >
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 conditionsRead less <
English Keywords
nvestment
debt issuance
share issuance
analyst
coverage