This paper develops a new approach to distinguishing clustering in analyst forecasts due to the causal influence of one analyst's forecast on another from clustering due to a common response to correlated information. We apply this approach by studying how analysts who currently provide...

This paper develops and applies a new approach to disentangling the influence of analysts on each other's earnings forecasts from the effects of correlated information shocks. We estimate that a new forecast by an analyst that is c cents above (below) another analyst's forecast causes the other...

This paper investigates the effects of analyst recommendations issued after a merger announcement on deal completion. We find the probability of completion increases (decreases) with the favorability of acquirer (target) recommendations. Results from instrumental variables tests support...

This paper examines the mechanisms by which acquirer CEOs are incentivized and their impact on merger decisions. We argue that the pre-merger structure of CEO wealth impacts a CEO's risk tolerance and ultimately her willingness to undertake a merger as well as the framework of the deal. As the...

We explore how analyst recommendation changes affect a security's trading volume at the market maker of the analyst's own firm. Using Nasdaq PostData, we find a dramatic increase in trading volume handled by the market maker of the analyst's firm relative to other market makers on recommendation...