We examine whether it is profitable to trade according to the recommendations of analysts who made accurate earnings forecasts in a prior year. Prior research has shown that analysts who made the most accurate earnings forecasts in the current period also made the most profitable recommendations...

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...