Analyst Coverage Overlaps and Interfirm Information Spillovers

We offer a novel perspective on the role of sell-side analysts as information intermediaries in capital markets by documenting flow new direction, namely, from to firms they cover. use analyst coverage overlaps and patent citations examine analyst-induced spillovers about technology industry trends. Consistent with coverage–related flows, are more likely cite another firm's if that firm is covered same analyst. The effect varies analysts' specialization, experience, level activity. Firms analyst-based connections peers also show greater corporate innovation. Collectively, our evidence indicates financial not only reduce asymmetries between market participants but facilitate production business intelligence through feedback interfirm spillovers.