An Empirical Examination of Sell-Side Brokerage Analysts’ Published Research, Concierge Services, and High-Touch Services

Forthcoming, European Accounting Review

53 Pages Posted: 24 Sep 2020

See all articles by David A. Maber

David A. Maber

California Polytechnic State University

Boris Groysberg

affiliation not provided to SSRN

Paul M. Healy

Harvard Business School; National Bureau of Economic Research (NBER)

Date Written: June 25, 2020

Abstract

This paper uses a proprietary panel dataset to categorize and quantify the activities that sell-side brokerage analysts use to build and sustain their network of buy-side client relations. We then examine the marginal impact of these activities on key analyst outcome metrics identified by prior literature. Our findings highlight the importance of two previously unstudied client-service activities—high-touch phone calls and non-deal road shows—and suggest that analysts may face a tradeoff between producing accurate earnings research and increasing the values of key performance measures that gauge the strength of their network of client relations.

Keywords: sell-side analysts, analyst ratings, brokerage commissions, earnings forecasts, compensation

Suggested Citation

Maber, David A. and Groysberg, Boris and Healy, Paul M., An Empirical Examination of Sell-Side Brokerage Analysts’ Published Research, Concierge Services, and High-Touch Services (June 25, 2020). Forthcoming, European Accounting Review, Available at SSRN: https://ssrn.com/abstract=3635139

David A. Maber (Contact Author)

California Polytechnic State University ( email )

San Luis Obispo, CA
United States

Boris Groysberg

affiliation not provided to SSRN

Paul M. Healy

Harvard Business School ( email )

Soldiers Field
Boston, MA 02163
United States
617-495-1283 (Phone)
617-496-7387 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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