Wall Street and Product Quality: The Duality of Analysts
研究发现金融分析师整体上因短期压力降低产品质量，但关注产品问题的分析师则通过深入调查和及时下调评级来提升产品质量。
ABSTRACT We investigate the role of financial analysts in product quality failures. Relying on information about product recalls, we first show that analyst coverage on average reduces product quality, particularly when managers face greater short-term pressure from institutional investors. However, after identifying a subgroup of analysts who raise questions on product-related issues in earnings conference calls, we find that coverage by these “product analysts” enhances rather than compromises product quality. Firms with greater product analyst coverage are also more likely to retire low-quality products. Additional analysis demonstrates that product analysts help safeguard product quality by further probing into product-related matters and issuing more timely recommendation downgrades after firms announce product deficiencies. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: G24; G34; G38; L15.