Document Type


Date of Degree

Summer 2016

Degree Name

PhD (Doctor of Philosophy)

Degree In

Business Administration

First Advisor

Paul Hribar

First Committee Member

Daniel W Collins

Second Committee Member

Richard D Mergenthaler

Third Committee Member

Cristi A Gleason

Fourth Committee Member

Samuel J Melessa


I examine the effect analysts have on the price response to earnings announcements. To address this question, I exploit an exogenous shock to analyst coverage to show that, following the loss of an analyst, the market reaction to earnings announcements decreases. In cross-sectional analyses, I show that the magnitude of the negative effect is decreasing in information asymmetry and the likelihood that a firm’s earnings are used more for contracting purposes. I further show that the magnitude of the negative effect is increasing in the readability of the financial statements and financial reporting comparability. This study contributes to the literature by providing a deeper understanding of the effect analysts have on the pricing of information contained in earnings announcements. As such, the results of this study should be of interest to regulators, researchers, and investors.


Analysts, Earnings announcements, Price response, Quasi-natural experiments


viii, 54 pages


Includes bibliographical references (pages 40-42).


Copyright 2016 R. Christopher Small