TY - JOUR
T1 - Institutional investor information network, analyst forecasting and stock price crash risk
AU - Gong, Xiao Li
AU - Liu, Jia
N1 - Funding Information:
We would like to acknowledge the financial support from the National Natural Science Foundation of China (Nos. 72271135 , 72141304 , 71901130 ); Project supported by Laboratory of Computation and Analytics of Complex Management Systems (Tianjin University); Special Funds for Taishan Scholars ( tsqn202211120 ).
Publisher Copyright:
© 2023 Elsevier B.V.
PY - 2023/4/10
Y1 - 2023/4/10
N2 - In this paper, we construct the information network of fund investors based on the theory of social relationship networks and examine its impact of fund information sharing with analysts on stock price crash risk. Our results show that private information sharing among institutional investors reduces crash risk. Further results show that fund information sharing can alleviate analyst optimism bias and improve analyst forecast accuracy, which further reduces stock price crash risk. Moreover, these identified effects are more pronounced in a bull market than a bear market. Our study contributes to the research on private information transmission in fund information networks, and provides a new perspective for recognizing the relationships among institutional investor behavior, analyst forecasting, and stock price crash risk.
AB - In this paper, we construct the information network of fund investors based on the theory of social relationship networks and examine its impact of fund information sharing with analysts on stock price crash risk. Our results show that private information sharing among institutional investors reduces crash risk. Further results show that fund information sharing can alleviate analyst optimism bias and improve analyst forecast accuracy, which further reduces stock price crash risk. Moreover, these identified effects are more pronounced in a bull market than a bear market. Our study contributes to the research on private information transmission in fund information networks, and provides a new perspective for recognizing the relationships among institutional investor behavior, analyst forecasting, and stock price crash risk.
KW - Analyst optimism bias
KW - Crash risk
KW - Fund information network
KW - Information sharing
UR - http://www.scopus.com/inward/record.url?scp=85151879739&partnerID=8YFLogxK
U2 - 10.1016/j.ribaf.2023.101942
DO - 10.1016/j.ribaf.2023.101942
M3 - Article
AN - SCOPUS:85151879739
SN - 0275-5319
VL - 65
JO - Research in International Business and Finance
JF - Research in International Business and Finance
M1 - 101942
ER -