Abstract

http://ssrn.com/abstract=1107359
 
 

References (29)



 
 

Citations (4)



 


 



Stock Selection Skills and Career Choice: Buy Side vs. Sell Side


Jeffrey A. Busse


Emory University - Department of Finance

T. Clifton Green


Emory University - Goizueta Business School

Narasimhan Jegadeesh


Emory University - Department of Finance

March, 17 2008


Abstract:     
Theory suggests the most profitable way to exploit stock picking skill is to set up an investment fund, yet in practice buy-side and sell-side stock analysts coexist. We examine the relative merits of stock picks from institutional investors and brokerage analysts, and the extent to which institutions use sell-side analysts' recommendations. We find that sell-side analysts' recommendations are informative. Although mutual fund purchases significantly outperform their sales the difference, in performance is largely concentrated on the day of the trade. Mutual funds tend to trade in the direction of recommendation revisions but their trade direction is not incrementally informative.

Number of Pages in PDF File: 40

Keywords: Analyst, Mutual Funds

JEL Classification: G12, G20

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Date posted: March 25, 2008  

Suggested Citation

Busse, Jeffrey A. and Green, T. Clifton and Jegadeesh, Narasimhan, Stock Selection Skills and Career Choice: Buy Side vs. Sell Side (March, 17 2008). Available at SSRN: http://ssrn.com/abstract=1107359 or http://dx.doi.org/10.2139/ssrn.1107359

Contact Information

Jeffrey A. Busse
Emory University - Department of Finance ( email )
Atlanta, GA 30322-2710
United States
404-727-0160 (Phone)
404-727-5238 (Fax)
T. Clifton Green (Contact Author)
Emory University - Goizueta Business School ( email )
1300 Clifton Rd.
Atlanta, GA 30322-2710
United States
404-727-5167 (Phone)
404-727-5238 (Fax)
Narasimhan Jegadeesh
Emory University - Department of Finance ( email )
Atlanta, GA 30322-2710
United States
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