We study whether the financial analysts' concern to maintain friendly relationships with firms' managers in order to preserve their access to ‘soft' qualitative information entice them to issue pessimistic (“earnings surprise management” hypothesis) or optimistic (“management access”...

We analyze the determinants of financial analysts' forecast accuracy. The empirical literature has enlightened variables related to analysts, to firms or both, in explaining the magnitude of forecast accuracy. But this literature does not explain in a common framework two opposite theoretical...

We endeavour to understand how the analysts' consensus can constraint the forecasts of a given analyst. Analysts are interested in generating trading volume, and do not necessarily release their most precise forecast. We show that forecast release depend upon consensus dispersion and upon the...

This paper questions the role of analyst recommendation in investor decision. To do so, we propose a model in which the investor weights his own signal and the analyst recommendation to make his trading decision: buy, sell, or non-participation. The analyst is interested in the volume of...

Implemented in May 2007, the French rules governing commission-sharing agreements (CSAs) consist of unbundling brokerage and investment research fees.The goal of this paper is to analyze the effect of these rules on analysts' forecasts. Based on a sample of one-year-ahead earnings per share...

We use a unique database, collected by aggregating analysts' reports on the Tunisian Stock Exchange. We study the price impact and the excess returns following analysts' recommendations. Results are qualitatively in line with the literature. However, although often significant, the results are...

In multi-country studies, researchers frequently extract data in a single currency rather than in native currencies. This approach can be misleading for financial analysts' forecasts in the euro zone when researchers are using the IBES database. We suspect that forecasts of earnings before the...