Zhi Da - University of Notre Dame - Indiana
All in a day's work: What do we learn from Analysts' Bloomberg Usage?
We use minute-by-minute Bloomberg online status data to characterize two important
dimensions of sell-side equity analysts' work habits: we estimate the average workday
length (AWL) to proxy for analysts' general effort provision and we use the percentage
away day (PAD) to proxy for their soft information production. Both AWL and PAD
vary much more across analysts than across time. Controlling for coverage, AWL is
positively related to the quantity and the timeliness of analyst forecasts, while PAD is
negatively related to quantity. Both are positively related to forecast accuracy, even
after controlling for analyst fixed effects. COVID lockdown provides further causal
evidence. Traveling analysts (with high pre-COVID PAD) experience a significant re-
duction in forecast accuracy during the lockdown. Using pre-COVID analyst commute
time to instrument increased AWL during the lockdown, we find a higher AWL to
significantly increase output and improve the accuracy of the forecasts.