In this study, we investigate the profitability persistence of the investment recommendations from analysts listed in four different star rankings: Institutional Investor magazine, StarMine's “Top Earnings Estimators” and “Top Stock Pickers” and The Wall Street Journal. We compare the...

The purpose of this study is to assess whether the analysts' activity is valuable for investors, i. e., whether the managers follow the analysts' forecasts and whether those who follow are able to achieve higher returns. We analyzed the behavior of investment fund managers in the Brazilian...

This paper examines the economic consequences of the initiation of governance analyst coverage. Governance analysts process, enhance, and disseminate governance-related information to capital market participants via, for example, governance reports and ratings. Using an exogenous shock in the...

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...

In this article, the authors posit a quid pro quo in economic benefits between sell-side equity analysts and large hedge fund managers. They show that large hedge funds opportunistically trade one to four days prior to the publication of a recommendation change, a finding consistent with flow of...

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...

In this research I empirically study the effects of information acquisition by investors or traders on analysts' forecast bias. Based on the theoretical literature on sell-side analysts, I argue that forecast bias is correlated to investors' information gathering, in two opposite directions. On...

Sell-side analysts commonly transition to buy-side money managers. I examine whether these career transitions compromise sell-side research, relying on granular career information of 6,310 analysts. I find that these analysts issue recommendations that favor their future buy-side employers...

We study the tournament behavior of sell-side analysts under proper timing and show that a strong non-monotonic relationship exists between analysts' relative forecasting performance early in the tournament and their later deviations from consensus. Given that the highest performers earn...

We examine the impact of informational and social analyst team diversity on forecast performance. We find that informational diversity is associated with less timely forecasts, whilst it is associated with more accurate forecasts. These findings are consistent with the group dynamics literature...