Prior studies have shown that investment banking affiliations place pressure on analysts to produce optimistic recommendations on the investment bank's stock-clients. Our analysis of a large sample of recommendations issued from 1995 through 2003 indicates that a mutual fund affiliation also...

Using an extensive database of 356,463 sell-side equity analysts' reports from 2002 to 2009, this study is one of the first to analyze the readability of analysts' reports. We first examine the determinants of variations in analyst report readability. Using several proxies for ability, we show...

I utilize the recursive partitioning method to extract analysts' weight of forecasts assigned in their stock recommendation decisions. My findings suggest that in addition to analysts' earnings forecasts, the non-earnings forecasts, such as sales forecasts and net income forecasts, also play an...

This study investigates the association between institutional investors’ ownership and sell-side analysts’ stock recommendations in the context of the heterogeneous nature of institutional investors. Based on a sample of 281 Malaysian public listed companies over the period 2008-2013 (732...

Using an extensive database of 356,463 sell-side equity analysts' reports from 2002 to 2009, this study is one of the first to analyze the readability of analysts' reports. We first examine the determinants of variations in analyst report readability. Using several proxies for ability, we show...

Previous studies of analysts' valuation methods show that sell-side analysts often rely on multiples-based relative valuation methods in deriving target price forecasts, predominantly earnings-based multiples. However, little is known about how analysts actually arrive at the earnings multiples...

We propose that an analyst's distance-to-industry-center (DTIC) can serve as an instrument for industry information. Consistent with this hypothesis, we find that DTIC has a significant negative impact on forecast accuracy. We conduct a series of tests to corroborate the link between DTIC and...

Top sportsmen often refer to competition against other top sportsmen as a motivation to exert more effort. We examine whether a similar pattern exists among another group of top professionals – star analysts. Our evidence suggests that star analysts concentrate their efforts and generate...

This study seeks to advance our understanding of how analysts' decision contexts influence the motivational, attitudinal and relational aspects of their decision-making rationality. Based on in-depth interviews with analysts, and using the lens of the bounded rationality theory, we illustrate...