We examine the selection and performance of stocks recommended by analysts at a large investment firm relative to those of sell-side analysts during the period mid-1997 and 2004. The buy-side firm’s analysts issued less optimistic recommendations for stocks with larger market capitalizations and lower return volatility than their sell-side peers, consistent with their facing fewer conflicts of ...

Taking the data of Shanghai and Shenzhen A-share listed companies from 2010 to 2019 as samples, this paper finds that there is A “pressure-promoting” effect analysts’ optimistic predictions on impression management CSR information disclosure. Further research shows that, compared with enterprises better performance, “pressure promotion” prediction more significant for poor performance. Compared...

We study the strategic behavior of equity analysts whose compensation is based on relative performance of their stock recommendations. Our model predicts that riskaverse analysts issue identical recommendations to avoid falling behind their peers. Top analyst awards, on the other hand, motivate analysts to issue bold recommendations. However, when the stock return is very volatile, the herding ...

We investigate reputation systems that rate the performance of analysts who make uncertain assertions (claims accompanied by estimated probabilities). Accuracy metrics (based on the fraction correct) are fair only if all analysts handle identical or statistically similar cases. Furthermore, accuracy metrics discourage analysts from offering predictions on difficult-to-predict events. Because of...

Social skills are important but difficult to measure. So far, few empirical studies have examined the effect of social on performance professionals. Using number LinkedIn connections as a proxy for skills, we investigate financial analysts’ their performance. We use multiple ways validate measure and show that analysts with better produce more accurate earnings forecasts stock recommendations e...

ABSTRACT Using machine learning–based algorithms, we measure key impressions about sell‐side analysts using their LinkedIn photos. We find that of analysts’ trustworthiness ( TRUST ) and dominance DOM are positively associated with forecast accuracy, especially after recent in‐person meetings between firm managers. High also enhances stock return sensitivity to revisions, for stocks high instit...