The Influence of Supply Chain Analysts on Supplier Innovation

Prof. Wenming WANG, ZJU100 Young Professor, Zhejiang University

Date:         16 November 2022 (Wednesday)
Time:        3:00pm – 4:00pm
Venue:      Online via Zoom
Host:         Prof. Steven ZHANG, Associate Professor of Accounting
Zoom link:  https://umac.zoom.us/j/95042527448


We examine whether and how financial analysts following both supplier and customer (hereafter, supply-chain analysts) encourage supplier innovation. We find that supplier firms followed by supply-chain analysts generate more patents and patents with higher impact, especially in durable goods industries. Our identification strategies based on exogenous shocks and the instrumental variable approach confirm the causal inference. Lower forecast optimism and more efficient information production are two plausible channels through which supply- chain analysts foster supplier innovation. This study extends the innovation literature to analyst specialization and sheds new light on the distinctive role of supply-chain analysts in nurturing supplier innovation.


Prof. Wenming WANG is the ZJU100 Young Professor in the Zhejiang University. He received his PhD from Hong Kong Baptist University. He published one paper in Journal of Corporate Finance and Journal of Banking and Finance in 2021, and published 2 papers in Journal of Banking and Finance and Review of Quantitative Finance and Accounting in 2022. His works have appeared in major journals including Pacific-Basin Finance Journal, Journal of Banking and Finance, Financial Management, Journal of Business Ethics and Accounting Horizons.

All are welcome!