The Ripple Effect of All-Star Females: Knowledge Spillover and Improved Analyst Performance

Abstract

This paper studies whether all-star females' representation in brokerages leads to positive outcomes. I find that an increase in the number of all-star females in a brokerage spurs the future performance of other analysts in that brokerage. Knowledge spillover is an economic channel that explains this effect, as analysts who cover firms in the same industry as all-star females experience a larger boost in their outcomes. A higher representation of all-star females in a brokerage further improves the timeliness of other analysts' forecasts. Overall, the results suggest that all-star female analysts have a positive effect on the outcome of their workplace.

Keywords: all-star females; knowledge spillover; sell-side analyst; analyst performance

JEL Classification: G00; G24; J00