会议专题

Anatomy of the Financial Analyst Rankings

We investigate the analyst rankings of Institutional Investor (I/I) and The Wall Street Journal (WSJ) in 1994-2001. We find that investment recommendation performance is a significant determinant of the rankings. The positive effect of earnings forecast accuracy on the rankings documented in prior research is significant even after adjusting for a variety of other factors. However, other determinants that have a primary component of recognition are generally much more important. Compared to other analysts in the year after becoming stars: (1) the forecasts of I/I stars are significantly more accurate-but only by a modest amount, and those of WSJ stars are not different; (2) the recommendations of I/I stars perform no better and those of WSJ stars perform significantly worse. Further, the behavior of both I/I and WSJ stars is generally consistent with that predicted by herding theories on the basis of career concerns over continuing to be a star (e.g., taking less risk in investment recommendations).

Douglas R. Emery Xi Li

Department of Finance, University of Miami

国际会议

2005年中国金融国际年会

昆明

英文

1-48

2005-07-05(万方平台首次上网日期,不代表论文的发表时间)