Share Performance Following Severe Decreases in Analyst Coverage‪.‬

INTRODUCTION Earlier researchers, such as Chang, Dasgupta, and Hilary (2006), argue that security analysts likely help to mitigate information asymmetry between managers and outside investors by: (a) synthesizing complex information for less sophisticated investors; and (b) making private information available to the public. (Examples of private information include that gained from firm visits and, prior to enactment of Regulation Fair Disclosure, discussions with top managers.) Chang, et al., and several other studies provide evidence that analyst coverage is negatively associated with information asymmetry (Hong, Lim, and Stein, 2000; Gleason and Lee, 2003).