What Makes an Analyst Report Influential?

Abstract

This paper examines common analyst report characteristics that make it likely for a report to significantly influence stock prices. First, a measurable market impact is positively associated with the size of the change in recommendations, earnings forecasts and target prices. Second, analyst-specific characteristics are decisive (i.e. consensus proximity, gender, workload and the time of publication). Third, on the firm-level, a report about a high-attention company with a high price-to-book value, small size and high turnover is more likely to be influential.

Keywords: analyst report, stock recommendation, earnings forecast, price target, influential forecast

JEL Classification: G14, G15, G24