Public attention and analyst visits: Evidence from China

Abstract

This paper investigates the impact of public attention on analyst visits. To establish causality, we use Hurun Rich List as an exogenous shock to identify the impact of public attention. Using a difference-in-difference approach, we find that public attention significantly enhances the number of analyst visits. This effect is more pronounced among firms with complex information environments and higher future uncertainty. Our findings indicate that public attention affects analyst visits through influencing investor demand for analyst services. Further analysis reveals that analyst visits improve the accuracy of analysts' forecasts. We also find that the rich listing events indirectly leads to policy changes or the introduction of new policies. Overall, our findings highlight the importance of public attention to the firms' information environment.