Events & Presentations
Is There Life After Loss of Sell- Side Analyst Coverage? Long-term Consequences and Options for Public Companies
Nov 10, 2009 11:30 AM MTSpeaker: Simona Mola, Assistant Professor of Finance, Arizona State University
For years, nearly every investor relations officer has spent time attracting, maintaining and managing sell-side analyst coverage on their companies. For small and mid-sized organizations, analyst coverage has been a lifeline to the broad capital market. Many CFOs believe that independent coverage drives investor interest and liquidity, which in turn leads to a more accurate share price and a truer company valuation. But what happens when these same sell-side analysts discontinue coverage? Lost coverage is not only meaningful to small companies but also to larger companies and their investors. What options exist for the IROs of those companies? Is a more aggressive outreach program practical? What about buying company-commissioned research? Please join us for a detailed discussion on this topic.
About the speaker:
Simona Mola, assistant professor of finance at Arizona State University, along with colleagues from Georgia Institute of Technology and Purdue University, has been studying these questions for the past several years. Professor Mola will present the conclusions of recent research where the role of sell-side analysts is evaluated and the impact from losing coverage on publicly traded companies is objectively measured.
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