Although managers are interested in the financial value of customers and researchers point
out the importance of stock analysts who advise investors, no studies seem to have explored
the implications of customer satisfaction for analyst stock recommendations. On the basis of a
large-scale longitudinal dataset, the authors find that positive changes in customer satisfaction
not only improve analyst recommendations but also lower dispersion in those
recommendations for the firm. These effects are stronger when product market competition is
high and financial market uncertainty is large. Also, analyst recommendations at least
partially mediate the effects of changes in satisfaction on firm abnormal return, systematic
risk, and idiosyncratic risk. Analyst recommendations represent a mechanism through which
customer satisfaction affects firm value. Thus, if analysts pay attention to Main Street
customer satisfaction, then Wall Street investors should have good reason to listen and follow.
Overall, our research reveals satisfaction’s impact on analyst-based outcomes and firm value
metrics and calls attention to the construct of customer satisfaction as a key intangible asset
for the investor community.
Dieser Eintrag ist Teil der Universitätsbibliographie.
Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.
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