The Two Faces of Analyst Coverage
研究发现，分析师覆盖过多会导致股价高估和未来低回报，而覆盖不足则使股价低于基本面价值，揭示了分析师覆盖对市场定价的双重影响。
We find that positive excess (strong) analyst coverage is associated with overvaluation and low future returns. This finding is consistent with the view that excessive analyst coverage, driven by investment banking incentives and analyst self-interests, raises investor optimism causing share prices to trade above fundamental value. However, weak analyst coverage causes stocks to trade below fundamental values. This finding indicates that investors tend to believe that these firms are more likely to be plagued by information asymmetries and agency problems. The results remain robust after controlling for the possible endogenous nature of analyst coverage and analysts' self-selection bias.