Anonymous Equity Research
Journal of Accounting Research, Volume 59, Issue 2, 2021
Posted: 26 May 2021
Date Written: May 1, 2021
Crowdsourced financial information platforms often allow content contributors to publish equity research anonymously. This study examines whether investors value or discount information in anonymous equity research. In the short window around research releases, we find that investors’ stock price reaction to anonymous research is muted in comparison to non-anonymous research. Consistent with credibility concerns influencing investor response, we document that this discount to anonymous research dissipates as the monitoring of content contributors intensifies and as authors develop a reputation for high-quality reporting. In addition, we perform a content analysis on the research reports and find that the muted market reaction to anonymous equity research is robust to controlling for textual attributes of information content, further supporting our inference that investors’ are concerned about the credibility of anonymous equity research.
Keywords: anonymity; crowdsourced; equity research; communication; seeking alpha
JEL Classification: D83, G14, G20, M40, M41
Suggested Citation: Suggested Citation