Do Analyst Experience, Location and Gender Affect the Performance of Broker Recommendations in Europe?

11 Pages Posted: 24 May 2011  

Campbell R. Harvey

Duke University - Fuqua School of Business; National Bureau of Economic Research (NBER); Duke Innovation & Entrepreneurship Initiative

Khalil Mohammed

AHL Man Systematic Strategies

Sandy Rattray

Man AHL

Date Written: May 23, 2011

Abstract

We examine how broker characteristics impact the performance of their recommendations in Europe. In contrast to extant research, we focus on a non-U.S. sample that post-dates the important regulatory changes of 2003-2004. Our research has three intriguing findings. First, we show that more experienced analysts produce better long recommendations than less experienced analysts. However, the more junior analysts outperform on short recommendations. Second, we find the global analysts outperform local analysts on local stock buy recommendation. However, local analysts have the edge in sell recommendations. Finally, in contrast to recent research, we find no statistical difference between the performance of male and female analysts.

Keywords: Analyst recommendations, female analysts, experienced analysts, junior analysts, local analysts, global analysts, local brokers, global brokers, experienced brokers

JEL Classification: G14, G15, M41

Suggested Citation

Harvey, Campbell R. and Mohammed, Khalil and Rattray, Sandy, Do Analyst Experience, Location and Gender Affect the Performance of Broker Recommendations in Europe? (May 23, 2011). Available at SSRN: https://ssrn.com/abstract=1850672 or http://dx.doi.org/10.2139/ssrn.1850672

Campbell R. Harvey (Contact Author)

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States
919-660-7768 (Phone)
919-660-8030 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Duke Innovation & Entrepreneurship Initiative ( email )

215 Morris St., Suite 300
Durham, NC 27701
United States

Khalil Mohammed

AHL Man Systematic Strategies ( email )

Riverbank House
2 Swan Lane
London, EC4R 3AD
United Kingdom
+44 207 144 1291 (Phone)

Sandy Rattray

Man AHL ( email )

Riverbank House
2 Swan Lane
London, EC4R 3AD
United Kingdom

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