Limited Attention and Analysts' Textual Bundling

Analysts constrained by limited attention, who work as market and firm information intermediaries, issue bundled reports. The purpose of this study is to explore the effect of analysts’ bundling earnings reports and the market response to bundled information. Sell-side analysts’ reports from 2013 to 2022 were used to investigate analysts’ bundling across the Shenzhen, Shanghai and ChiNext stock markets. The results show that analysts are more likely to issue bundled reports when issuing concurrent announcements and managing heavy workloads, consistent with giving limited attention to their tasks. Furthermore, the findings suggest that bundled reports are less thorough, less informative and create a weaker market reaction when the information is released.