Sell-Side Financial Analysts and the CFA Designation Program

We examine the effects the Chartered Financial Analyst (CFA) designation program has on recommendation performance and career outcomes of the analysts who complete the curriculum and become charterholders. For these analysts, both their recommendation performance and their chances of making the Institutional Investor’s All-America Research Team increase during 1993–2015. These effects are attributable to the CFA program curriculum. The results remain largely stable across the pre- and post-2000 subperiods, and they survive an array of robustness checks.

Keywords: Capital markets, CFA program, Analyst recommendation performance, Analyst career outcome, Occupational certification/licensing

JEL Classification: G24, J24, J44, M53

Suggested Citation: Suggested Citation

Kang, Qiang and Li, Xi and Su, Tie, Sell-Side Financial Analysts and the CFA Designation Program (August 7, 2017). Financial Analysts Journal, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2137312 or http://dx.doi.org/10.2139/ssrn.2137312