Do Analysts Who Move Markets Have Better Careers?
The Journal of Financial Research, Volume XLI (2), 181-212.
51 Pages Posted: 12 Jun 2019 Last revised: 26 Dec 2020
Date Written: May 25, 2019
This study investigates the association between analysts’ ability to issue influential recommendations and their career outcomes. The fraction of recommendations that are defined as influential are linked to a higher probability of an analyst moving to a higher status brokerage house, and lower probability of either being demoted to a lower-status brokerage house or leaving the profession. Analysts who more often issue influential recommendations also have a higher chance of being ranked by Institutional Investor All-America, having longer careers, and having lower job turnover in comparison to peers.
Keywords: security analysts, career concerns, influential analysts
JEL Classification: D82, G11, G12, G14, G24, G28, K22, M41
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