Are the Wall Street Analyst Rankings Popularity Contests?

被引:76
作者
Emery, Douglas R. [1 ]
Li, Xi [2 ]
机构
[1] Univ Miami, Sch Business, Coral Gables, FL 33124 USA
[2] XL Partners LLC, Boston, MA 02458 USA
关键词
MUTUAL FUND PERFORMANCE; EARNINGS FORECASTS; SECURITY ANALYSTS; CAREER CONCERNS; INVESTMENT RECOMMENDATIONS; STOCK RECOMMENDATIONS; PUBLIC OFFERINGS; MARKET; REPUTATION; ECONOMICS;
D O I
10.1017/S0022109009090140
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
We investigate the (sell-side) analyst rankings of Institutional Investor (I/I) and The Wall Street Journal (WSJ), using data from 1993-2005. We find that factors with a primary component of recognition are the most important determinants of the rankings, although performance measures are statistically significant determinants in some cases. The single exception to this finding is with existing WSJ stars, where industry-adjusted investment-recommendation performance is the only significant determinant of repeating as a star. Further, in the year after becoming stars, the recommendations of WSJ stars are significantly worse than those of nonstars; and the recommendations and earnings forecasts of I/I stars, as well as the earnings forecasts of WSJ stars, are not significantly different from those of nonstars. We conclude that these rankings are largely "popularity contests."
引用
收藏
页码:411 / 437
页数:27
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