This study examines the relationship between the value of financial analysts' recommendations and the intensity of firms' research and development (R&D) expenditures. We conduct univariate, portfolio and regression analyses using a sample of 8,620 public firms for the period 1993-2004. The...

There are several noteworthy findings here about the usefulness of analysts' buy recommendations in investment decisions. First, recommendations add more value when they are consistent with other signals than when they are inconsistent. Second, other signals, such as earnings revisions and price...