Document Code: https://doi.org/10.1111/1911-3846.12363

Journal: Contemporary Accounting Research, 2018, 35(4). (with Bing Han and Shasha Liu)

Key Words: Analyst Visit, Forecast Accuracy, Informational Advantage; Geography

Abstract: We examine the improvements in forecast accuracy that result from analysts' visits to listed companies. We find that company visits significantly enhance the accuracy of the analysts' earnings forecasts for those companies. The benefit from company visits is more pronounced for companies that are more neglected or less accessible and for brokerage firms that face less pressure for optimistic forecasts from buy‐side clients. Our results are robust and remain significant after controlling for endogeneity and selection bias. Overall, our findings show that private interactions with company manage