Analyst following along the supply chain

Yuyan GUAN, M. H. Franco WONG, Yue ZHANG

Research output: Journal PublicationsJournal Article (refereed)peer-review

63 Citations (Scopus)


We document that the likelihood of an analyst following a supplier–customer firm pair increases with the strength of the economic ties along the supply chain, as measured by the percentage of the supplier’s sales to the customer. Analysts who follow a covered firm’s customer provide more accurate earnings forecasts for the supplier firm than analysts who do not. While both types of analysts respond to and incorporate the earnings news from the customer firm into their revisions of the supplier’s earnings forecasts, supplier–customer analysts exhibit a larger improvement in their forecast accuracy for the supplier subsequent to the customer’s earnings announcements, when compared to other analysts. Overall, the evidence suggests that supplier–customer analysts benefit from the informational complementarities along the supply chain and improve their forecast accuracy as a result.
Original languageEnglish
Pages (from-to)210-214
Number of pages5
JournalReview of Accounting Studies
Issue number1
Early online date10 Jun 2014
Publication statusPublished - Mar 2015
Externally publishedYes


  • Analyst following
  • Customer momentum
  • Forecast accuracy
  • Forecast revisions
  • Information transfers
  • Supply chain

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