The Effect of Industry Co-Location on Analysts' Information Acquisition Costs
研究发现，分析师跟踪的企业若远离同行业其他企业，其投资组合规模更小、预测准确性更低，且这种成本在盈利预测难度大时更显著。
ABSTRACT We examine how the co-location of firms in the same industry affects analysts' cost of gathering and processing information. We find that when the firms in an analyst's portfolio are located farther away from other firms in the same industry, the analyst's portfolio size is smaller and average forecast accuracy is lower. We further find that the additional costs that analysts incur to follow distant firms are amplified when earnings are more difficult to forecast. Last, we provide some evidence that managers are more knowledgeable about other firms in the same geographic area. Specifically, managers are more likely to reference firms in their industry that are geographically closer during conference calls. This paper provides additional evidence that the co-location of firms in the same industry not only affects operating and strategic decisions (as documented in the existing literature), but also analysts' costs of gathering and analyzing information about the firm. JEL Classifications: D83; M40; M41; R10; R12.