Using data from the Stockholm Stock Exchange we study the value added by (as distinct from the abnormal returns to) analysts’ recommendations. Recommending brokers’ clients trade profitably around positive recommendations at the expense of the clients of brokers without analyst coverage....

Using data from the Stockholm Stock Exchange we study the value added by (as distinct from the abnormal returns to) analysts’ recommendations. Recommending brokers’ clients trade profitably around positive recommendations at the expense of other brokers’ clients. Significant profits come...

We examine the extent to which brokers generate profits for their customers by issuing stock recommendations, and whether these profits can explain the elevated trading volumes around the time they are issued. Using a comprehensive data set of brokers' daily transactions on the Stockholm Stock...

We examine a large and comprehensive data set of brokers' daily transactions on the Stockholm Stock Exchange covering a ten-year period (1997-2006). We show that recommending brokers execute, on average, profitable trades around positive recommendation revision dates. These profits are matched...

Using data from the Stockholm Stock Exchange we study the value added by (as distinct from the abnormal returns to) analysts’ recommendations. Recommending brokers’ clients trade profitably around positive recommendations at the expense of other brokers’ clients. Significant profits come...

Investment consultants advise institutional investors on their choice of fund manager. Focusing on U.S. actively managed equity funds, we analyze the factors that drive consultants’ recommendations, what impact these recommendations have on flows, and how well the recommended funds perform. We...

Using survey data we analyze institutional investors’ expectations about the future performance of fund managers and the impact of these expectations on asset allocation decisions. Past performance is a driver of both plan sponsors’ expectations of fund managers’ future performance and of...

Investment consultants market their services by claiming that their fund manager recommendations add significant value. Using detailed data from the leading investment consultants we find no such evidence. A forensic analysis of consultants’ disclosures reveals a number of practices that...

Using survey data, we analyze institutional investors’ expectations about the future performance of fund managers and the impact of those expectations on asset allocation decisions. We find that institutional investors allocate funds mainly on the basis of fund managers’ past performance and...