Sell-side debt analysts

Rick Johnston; Stanimir Markov; Sundaresh Ramnath

doi:10.1016/j.jacceco.2008.07.001

Sell-side debt analysts

Rick Johnston, Stanimir Markov, Sundaresh Ramnath

Accounting

Research output: Contribution to journal › Article › peer-review

32 Scopus citations

Abstract

We study the determinants and market impact of sell-side debt research. Analyzing a sample of 5920 debt reports published by 15 brokerage firms from 1999 to 2004, we document that companies with a higher probability of financial distress, lower market-to-book ratio, larger debt, and higher leverage receive more debt research. In addition, we document higher frequency of debt reports around credit ratings downgrades and find that their publication impacts equity prices. The evidence enhances our understanding of the nature of the market forces shaping sell-side debt research and its effect on price formation.

Original language	English (US)
Pages (from-to)	91-107
Number of pages	17
Journal	Journal of Accounting and Economics
Volume	47
Issue number	1-2
DOIs	https://doi.org/10.1016/j.jacceco.2008.07.001
State	Published - Mar 1 2009

Keywords

Analyst
Credit rating
Debt
Financial distress
Information intermediary

ASJC Scopus subject areas

Accounting
Finance
Economics and Econometrics

Access to Document

10.1016/j.jacceco.2008.07.001

Fingerprint Dive into the research topics of 'Sell-side debt analysts'. Together they form a unique fingerprint.

Cite this

@article{e7cc885eccd84c319b75e7651e93be71,

title = "Sell-side debt analysts",

abstract = "We study the determinants and market impact of sell-side debt research. Analyzing a sample of 5920 debt reports published by 15 brokerage firms from 1999 to 2004, we document that companies with a higher probability of financial distress, lower market-to-book ratio, larger debt, and higher leverage receive more debt research. In addition, we document higher frequency of debt reports around credit ratings downgrades and find that their publication impacts equity prices. The evidence enhances our understanding of the nature of the market forces shaping sell-side debt research and its effect on price formation.",

keywords = "Analyst, Credit rating, Debt, Financial distress, Information intermediary",

author = "Rick Johnston and Stanimir Markov and Sundaresh Ramnath",

year = "2009",

month = mar,

day = "1",

doi = "10.1016/j.jacceco.2008.07.001",

language = "English (US)",

volume = "47",

pages = "91--107",

journal = "Journal of Accounting and Economics",

issn = "0165-4101",

publisher = "Elsevier",

number = "1-2",

}

TY - JOUR

T1 - Sell-side debt analysts

AU - Johnston, Rick

AU - Markov, Stanimir

AU - Ramnath, Sundaresh

PY - 2009/3/1

Y1 - 2009/3/1

N2 - We study the determinants and market impact of sell-side debt research. Analyzing a sample of 5920 debt reports published by 15 brokerage firms from 1999 to 2004, we document that companies with a higher probability of financial distress, lower market-to-book ratio, larger debt, and higher leverage receive more debt research. In addition, we document higher frequency of debt reports around credit ratings downgrades and find that their publication impacts equity prices. The evidence enhances our understanding of the nature of the market forces shaping sell-side debt research and its effect on price formation.

AB - We study the determinants and market impact of sell-side debt research. Analyzing a sample of 5920 debt reports published by 15 brokerage firms from 1999 to 2004, we document that companies with a higher probability of financial distress, lower market-to-book ratio, larger debt, and higher leverage receive more debt research. In addition, we document higher frequency of debt reports around credit ratings downgrades and find that their publication impacts equity prices. The evidence enhances our understanding of the nature of the market forces shaping sell-side debt research and its effect on price formation.

KW - Analyst

KW - Credit rating

KW - Debt

KW - Financial distress

KW - Information intermediary

UR - http://www.scopus.com/inward/record.url?scp=59749084951&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=59749084951&partnerID=8YFLogxK

U2 - 10.1016/j.jacceco.2008.07.001

DO - 10.1016/j.jacceco.2008.07.001

M3 - Article

AN - SCOPUS:59749084951

VL - 47

SP - 91

EP - 107

JO - Journal of Accounting and Economics

JF - Journal of Accounting and Economics

SN - 0165-4101

IS - 1-2

ER -