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

Sipeng Zeng and Yingmei Esme Li

Economics Letters, 2024, vol. 240, issue C

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.

Keywords: Bold recommendation; Financial analyst; Star analyst; Buy and Hold Return (search for similar items in EconPapers)
JEL-codes: G11 G17 G24 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176524002490
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:240:y:2024:i:c:s0165176524002490

DOI: 10.1016/j.econlet.2024.111765

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().