Do informational advantages, reputation and experience lead to better earnings forecasts and stock recommendations? It is shown that for local Chinese securities firms both earnings forecasts and stock recommendations are, in general, biased upwards and financial markets view stock...

I provide evidence that analysts whose earnings forecast revisions showed signs of greater exaggeration in the past make recommendation changes that lead to lower abnormal returns than their peers. Interpreting stock recommendations as a forecast of future abnormal returns, I show that this...

This paper illustrates an approach to modelling judgement. Mathematically, derived sequential decision tree models of judgement are constructed using the Classification And Regression Tree (CART) algorithm developed by Breiman et al. (1984). This technique was selected because it attempts to...

To what extent conflicts of interest affect the investment value of sell-side analyst research is an ongoing debate. We approach this issue from a new direction by investigating how asset-management divisions of investment banks use stock recommendations issued by their own analysts. Based on...

The paper collects and classifies the properties of more than 4600 analysts reports on Italian listed stocks in order to assess their impact on market reactions. The paper innovates the most common approach in the literature which resort mainly on information available on commercial database,...

Security analysts, analyst forecast and market reaction are anecdotal in restructuring transactions, sometime conflicting and some other time imperative to the process of transaction. This article attempts to highlight a consistent association between analyst, market reaction and corporate...

We examine the dynamic forecasting behavior of security analysts in response to their prior performance relative to their peers within a continuous time/multi-period framework. Our model predicts a U-shaped relationship between the boldness of an analyst's forecast, that is, the deviation of her...

This study examines the reactions of the Spanish capital market and financial analysts to CEO presentations organized by the Spanish Society of Financial Analysts. The sample contains 156 presentations that took place during the period 1994-2000. To estimate the effect of these meetings -on...

Using 1994–2009 data, we find that All-American (AA) analysts’ buy and sell portfolio alphas significantly exceed those of non-AAs by up to 0.6 % per month after risk-adjustments for investors with advance access to analyst recommendations. For investors without such access, top-rank AAs...