%0 Journal Article %T The Real Effects of Financial Shocks: Evidence from Exogenous Changes in Analyst Coverage %+ Groupement de Recherche et d'Etudes en Gestion à HEC (GREGH) %+ Schulich School of Business, York University %A Derrien, François %A Kecskés, Ambrus %< avec comité de lecture %@ 0022-1082 %J Journal of Finance %I Wiley %V 68 %N 4 %P 1407-1440 %8 2013-08-01 %D 2013 %R 10.1111/jofi.12042 %K Financial shocks %K Information asymmetry %K Real effects %K Investment %K Financing %K Cash holdings %K Natural experiment %K Matching estimators %K Difference-in- differences %K Equity research analysts %Z Humanities and Social Sciences/Business administration/domain_shs.gestion.finJournal articles %X We study the causal effects of analyst coverage on corporate investment and financing policies. We hypothesize that a decrease in analyst coverage increases information asymmetry and thus increases the cost of capital; as a result, firms decrease their investment and financing. We use broker closures and broker mergers to identify changes in analyst coverage that are exogenous to corporate policies. Using a difference-in-differences approach, we find that firms that lose an analyst decrease their investment and financing by 1.9% and 2.0% of total assets, respectively, compared to similar firms that do not lose an analyst. %G English %L hal-00852356 %U https://hec.hal.science/hal-00852356 %~ SHS %~ HEC %~ CNRS