COHEN, LAUREN; FRAZZINI, ANDREA; MALLOY, CHRISTOPHER - In: Journal of Finance 65 (2010) 4, pp. 1409-1437
We study the impact of social networks on agents' ability to gather superior information about firms. Exploiting novel data on the educational background of sell-side analysts and senior corporate officers, we find that analysts outperform by up to 6.60% per year on their stock recommendations...