What Makes an Analyst Report Influential?
14 Pages Posted: 22 Aug 2015
Date Written: August 19, 2015
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: Suggested Citation