Because analyst activities result
in collection of value-relevant information and its dissemination
into the capital market, the extent and frequency of analyst
activities, i.e., analysts coverage, decrease the size as
well as value of private information, ultimately improving
the external capital market efficiency.We operationalized analysts
coverage as the number of firms about which analysts issued
reports divided by total number of firms in the KOSPI
(Korea Composite Stock Price Index) market. This measure
was computed on an annual basis.