Braveheart: On the divergence of recommendations between normal and star analysts

    Research output: Contribution to journalJournal

    Abstract

    This paper examines how conflicting recommendations from star analysts and normal analysts predict a firm's future stock price and operating performance. We find that when normal analysts issue bold negative recommendations that contradict the views of star analysts, firms that receive such negative recommendations experience worse stock returns and deteriorating fundamental performance over the following two years. Our study provides new insights into the disclosure of private information by financial analysts.
    Original languageEnglish
    Article number111765
    Number of pages7
    JournalEconomics Letters
    Volume240
    DOIs
    Publication statusPublished - Jul 2024

    Keywords

    • Bold recommendation
    • Buy and Hold Return
    • Financial analyst
    • Star analyst

    Indexed by

    • ABDC-A
    • SSCI

    Fingerprint

    Dive into the research topics of 'Braveheart: On the divergence of recommendations between normal and star analysts'. Together they form a unique fingerprint.

    Cite this