【Topic】
Analysts’ Risk Discussions Mark Bradshaw
【Host】
Prof. Liu Feng, director of Center for Accounting Studies of Xiamen University
【Abstract】
Using textual analysis for a large sample of analyst reports on U.S. firms, we examine the determinants and informativeness of analysts’ specific discussions of risk. Analysts’ risk discussions are largely driven by unobserved time-invariant analyst and analyst-firm fixed effects, suggesting analysts tailor risk assessments to the underlying firms rather than provide a generic commentary. More importantly, analysts’ risk discussions are positively correlated with subsequent stock return volatility and conducive to the informativeness of their investment opinions, especially for firms with weaker information environments. Our results reveal that analysts’ risk discussions provide incremental information about the underlying firms’ potential risk exposure and enhance the value of their research to firms and capital markets.
【Speaker】
Hongping Tan
Professor of accounting and finance, McGill University
Hongping Tan worked in the Schulich School of Business (York University), School of and Finance (University of Waterloo), University at Buffalo, the State University of New York. Currently, he is the editor of the editorial advisory board of Contemporary Accounting Research (2017-2025)，JIBS (022-2025), Asia-Pacific Journal of Financial Studies, and the deputy editor of Financial Review (2017to present). He has published his works in the most prestigious international journals, such as Journal of Accounting and Economics, Journal of Financial Economics, Journal of Accounting Research, The Accounting Review, Contemporary Accounting Research, Review of Accounting Studies.
