분석보고서가 정보비대칭에 미치는 영향

Abstract

The Effect of Analysts' Report on The Information AsymmetryCho, Joong-Seok* Jo, Mun-Hee**The existence of information asymmetry in the capital market could affect the essential resource distribution, cause the adverse-selection problem and potentially result in the market failure. In this study, we empirically investigates the effect of analyst reports on the information asymmetry in the capital market. We expect that the analyst reports could reduce the information asymmetry by providing firm's information to the market.Using VOLA(Daily stock return volatility) and VOL(Trading volume turnover) as a proxy of the information asymmetry, we find that as we expected, the firms covered by analysts have less information asymmetry than the firms with no such coverage. Specifically, firms with analyst reports enjoy lower VOLA and higher VOL than firms without them. This result shows that the analyst as an information intermediary, reduces the information asymmetry in the capital market.