The acquisition and use of information to make investment decisions: a study of financial analysts in China
- Publisher: International Journal of Management
This study draws upon semi-structured interviews with 23 Chinese financial analysts (Beijing, Shanghai) to examine how they improve their information comprehension through private information search and use such information to evaluate company value. Despite working in state-owned institutions, Chinese financial analysts claim that their analytical framework is similar to their counterparty in the Western setting. However, our results indicate that Chinese analyst's analytical practice is considerably influenced by the specific characteristics of the Chinese listed company both in information acquisition and usage. Private meetings are regarded as a 'value added' information source providing price-sensitive information including product cost structure and possible assets injection from the listed company principle shareholders.