The Information Transfer of Stock Price Crash to the Intra-Industry Peer Firm's Analyst Forecasting Behavior

This study investigates how the earnings forecast behavior of a financial analyst is influenced by a stock price crash in a peer firm. The additional influence including the individual characteristics of the analyst‘s industrial expertise and the comparability of the financial statement was also observed. As a result, in cases where a stock price crash occurs in a peer firm, the information transfer effect could be observed. Also, the magnitude of the information transfer effect showed that the higher the industrial expertise of the financial analyst, the higher the comparability of the financial statements, and the larger the firm that experienced stock price crash, the greater the effect would be.