What Makes an Analyst Report Influential?

14 Pages Posted: 22 Aug 2015

See all articles by Leonie Herrmann

Leonie Herrmann

University of Giessen - Department of Financial Services

Alexander Gabriel Kerl

University of Giessen - Department of Financial Services

Date Written: August 19, 2015

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

Suggested Citation

Herrmann, Leonie and Kerl, Alexander Gabriel, What Makes an Analyst Report Influential? (August 19, 2015). Available at SSRN: https://ssrn.com/abstract=2647266 or http://dx.doi.org/10.2139/ssrn.2647266

Leonie Herrmann (Contact Author)

University of Giessen - Department of Financial Services ( email )

Licher Str, 74
Giessen, 35394
Germany

Alexander Gabriel Kerl

University of Giessen - Department of Financial Services ( email )

Licher Str, 74
Giessen, 35394
Germany

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