The use of information by financial analysts during a financial crisis

Kheng L Tan, Shahed Imam, Mujahid Mohiuddin Babu

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)
62 Downloads (Pure)


This study examines the relevance of information set in sell‐side analysts' publicly available reports during the recent financial crisis. Prior studies suggest that analysts use more nonfinancial than financial information to support stock recommendations but there is little academic research on what information is relevant to them during periods of serious economic stress. We analyzed 90 analysts' reports from three subperiods (a) precrisis (2006–2007), (b) crisis (2007–2009), and (c) postcrisis (2009–2010). Our findings suggest that during the crisis period, analysts focus more on specific sets of information such as cost control and strength of management whereas in the noncrisis period they focus more on information related to earnings and market outlook. The importance of the interdependency of financial and nonfinancial information is evident in their recommendation especially in crisis and postcrisis period as we find joint use of both set of information to support their recommendations. We conclude that although nonfinancial information may have been used more frequently and jointly to support recommendations, it is financial information which ultimately guides analysts' recommendations both in good times and in bad.
Original languageEnglish
Pages (from-to)369-379
Number of pages11
JournalStrategic Change
Issue number5
Early online date6 Sept 2019
Publication statusPublished - Sept 2019

Bibliographical note

This is the peer reviewed version of the following article: Tan, KL, Imam, S & Mohiuddin Babu, M 2019, 'The use of information by financial analysts during a financial crisis' Strategic Change, vol. 28, no. 5, pp. 369-379 which has been published in final form at This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.

Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders.


  • Financial
  • Analysts
  • Crisis
  • Information
  • Recommendation
  • Relevance

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Finance


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