Who benefits from analyst "top picks"?

Justin Birru (The Ohio State University), Sinan Gokkaya (Ohio University), Xi Liu (Miami University), René M. Stulz (The Ohio State University, NBER and ECGI)

Following the Global Settlement, analysts extensively use a top pick designation to highlight their highest conviction best ideas. Such a designation enables analysts to provide greater granularity of information, but it can potentially be influenced by conflicts of interest. Examining a comprehensive sample of top picks, we find that they have greater investment value, attract greater media and investor attention, and lead to more trading than buy recommendations. Top picks that have poor ex-post investment performance are more likely to be influenced by strategic objectives. Institutional investors appear to be able to identify such top picks while retail investors do not

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Year of publication:	[2020]
Authors:	Birru, Justin ; Gokkaya, Sinan ; Liu, Xi ; Stulz, René M.
Publisher:	[Columbus, Ohio] : The Ohio State University, Fisher College of Business, Charles A. Dice Center for Research in Financial Economics
Subject:	The equity premium puzzle \| macro finance \| DSGE \| search frictions \| recursive utility \| capital accumulation \| projection \| the welfare cost \| Risikoprämie \| Risk premium \| Equity-Premium-Puzzle \| Equity premium puzzle \| Finanzanalyse \| Financial analysis \| Dynamisches Gleichgewicht \| Dynamic equilibrium \| Wohlfahrtsanalyse \| Welfare analysis \| Kapitaleinkommen \| Capital income \| Suchtheorie \| Search theory

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Extent:	1 Online-Ressource (circa 74 Seiten)
Series:	Fisher College of Business working paper series. - Columbus, Ohio : [Verlag nicht ermittelbar], ZDB-ID 2189279-9. - Vol. WP 2020, 024 Fisher College of Business working paper series. - Columbus, Ohio : [Verlag nicht ermittelbar], ZDB-ID 2412551-9. - Vol. WP 2020-03, 024
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	10.2139/ssrn.3717851 [DOI]
Classification:	G11 - Portfolio Choice ; G12 - Asset Pricing ; G14 - Information and Market Efficiency; Event Studies ; G20 - Financial Institutions and Services. General ; G23 - Pension Funds; Other Private Financial Institutions ; G24 - Investment Banking; Venture Capital; Brokerage
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012301460