Can FinTech Competition Improve Sell-Side Research Quality?

Russell Jame, Stanimir Markov, Michael C. Wolfe

Research output: Contribution to journalArticlepeer-review

4 Scopus citations


We examine how increased competition stemming from an innovation in financial technology influences sell-side analyst research quality. We find that firms added to Estimize, an open platform that crowdsources short-term earnings forecasts, experience a pervasive and substantial reduction in consensus bias and a limited increase in consensus accuracy relative to matched control firms. Long-term forecasts and investment recommendations remain similarly biased, alleviating the concern that the documented reduction in bias is a response to broad economic forces. At the individual analyst level, we find that bias reduction is more pronounced among close-to-management analysts, and that more biased analysts respond by reducing their coverage of Estimize firms. The collective evidence suggests that competition from Estimize improves sell-side research quality by discouraging strategic bias.

Original languageEnglish
Pages (from-to)287-316
Number of pages30
JournalAccounting Review
Issue number4
StatePublished - Jul 2022

Bibliographical note

Publisher Copyright:
© 2022 American Accounting Association. All rights reserved.


  • analysts
  • crowdsourcing
  • FinTech
  • forecast bias

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


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