Cheng, Yingmei; Liu, Mark H.; Qian, Jun - In: Journal of Financial and Quantitative Analysis 41 (2006) 01, pp. 51-83
We examine the role of financial analysts in forming institutional investors' investment decisions. In our model, a fund manager invests in a stock based on the optimal weighting of reports created by a biased sell-side analyst and an unbiased buy-side analyst. The manager puts a higher weight...