Analyst following. Prior studies ar

Analyst following. Prior studies argue that analyst following proxies for a firm’s information that is publicly available. More specifically, Roulstone (2003) documents results that are consistent with analysts reducing information asymmetry by providing public information to market participants. A firm’s analyst following is used as a proxy for the level of non-governance disclosures and the extent of a firm’s communication with financial analysts. Hence we expect a negative (positive) relation between analyst following and share price volatility.