Career concerns of banking analysts

Joanne Horto (First Author), Shan Wu (Participant Author), George Serafeim (Participant Author)

    Research output: Contribution to journalJournal

    23 Citations (Web of Science)


    We study how career concerns influence banking analysts’ forecasts. Banking analysts’ first (last) earnings forecast of the year is relatively more optimistic (pessimistic) for a bank that could be their future employer. This pattern is not observed when the same analysts forecast earnings of banks unlikely to be their future employer. We use the Global Settlement as an exogenous shock on career concerns and show that this forecast pattern is more pronounced after the Settlement. Moreover, we find evidence that analysts benefit from this behavior as analysts that are more biased in their forecasts of potential future employers are more likely to move to a higher reputation bank.
    Original languageEnglish
    Pages (from-to)231-252
    JournalJournal of Accounting and Economics
    Issue number2–3
    Publication statusPublished - 2017

    Corresponding author email

    Project sponsor


    Project name

    Division of Faculty Research and Development of Harvard Business School

    Project No.



    • Career concerns
    • Forecast bias
    • Investment banks
    • Labor market
    • Revolving door
    • Sell-side analysts

    Indexed by

    • FT
    • ABDC-A*
    • Scopus
    • SSCI


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