Sell-Side Analysts and Gender: A Comparison of Performance, Behavior, and Career Outcomes

Abstract

Using a comprehensive sample of investment recommendations, we investigate differences in the performance, behavior, and career outcomes of male and female sell-side analysts. Compared to their male counterparts, we find that the recommendations of female analysts produce similar abnormal returns but with lower idiosyncratic risks. Further, gender does not seem to negatively influence female analysts’ career outcomes as defined by their star rankings and job mobility among brokerage firms. In fact, being a female analyst seems to increase the likelihood of being listed among the prestigious Institutional Investor and WSJ star analysts.

Keywords: gender, sell-side analyst, investment recommendations, performance, behavior, career outcomes

JEL Classification: J24, J15, J16, G14, G24, G28