Gender and Analyst Reports

Abstract

We examine gender differences in characteristics of sell-side analyst reports. We find that female analyst reports are shorter and more readable. Consistent with an “ethical standard” explanation, the textual sentiment of female analyst reports is less optimistic. Moreover, female analyst reports contain less financially oriented content, are more long-term oriented, and are less likely to be issued in response to coverage firm earnings announcements. Readability, length, and sentiment of female analysts’ reports induce different market reactions than their male counterparts, yet female analysts improve report readability and increase objectivity over their career more than male analysts do. Our results provide evidence of gender stereotyping in the analyst profession.

Keywords: earnings announcements, gender, qualitative information, readability, sell-side analyst, analyst reports

JEL Classification: G10, G14, J16, M14, M41