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| Research on the Impact of Alumni Relationship on Analysts Sharing Private Information Among Peers |
| YI Zhihong，GUO Yongzhen，YANG Shengzhi |
| 1. Renmin University of China, Beijing, China; 2. Beijing Technology and Business University, Beijing, China） |
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Abstract This study takes analysts’ visiting listed firms as a scenario, and uses empirical methods to study how analysts obtain information from peers about companies through alumni relations. We found that: Compared with other analysts who were not involved in the site visit, the related analysts who graduated from the same university with the analysts that visited the firm have more obvious improvement in forecast accuracy after the event; This effect is more significant in groups with higher site visit costs and worse information environment of firms; The earnings forecast adjustment released by the related analysts after the site visit obtains a significant positive market response, which indicates that the capital market recognizes the information they released; When alumni are more closely connected and the overlap of the stock portfolios covered by alumni analysts is high, the phenomenon of transferring private information based on alumni relationship is more prominent.
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Received: 30 March 2022
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