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

中文翻译：

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分析师覆盖范围重叠和公司间信息溢出

我们通过记录一个新方向的信息流，即从分析师到他们所涵盖的公司，为卖方分析师作为资本市场信息中介的作用提供了一个新的视角。我们使用分析师覆盖范围重叠和专利引用来检查分析师引发的有关技术和行业趋势的信息溢出。与分析师覆盖相关的信息流一致，如果该公司被同一分析师覆盖，公司更有可能引用另一家公司的专利。这种影响因分析师的专业化程度、经验和活动水平而异。与同行有更多基于分析师的联系的公司也表现出更大的企业创新。总的来说，