Abstract
We survey 344 buy-side analysts from 181 investment firms and conduct 16 detailed follow-up interviews to gain insights into the activities of buy-side analysts, including the determinants of their compensation, the inputs to their stock recommendations, their beliefs about financial reporting quality, and the role of sell-side analysts in buy-side research. One important finding is that 10-K or 10-Q reports are more useful than quarterly conference calls and management earnings guidance for determining buy-side analysts׳ stock recommendations. Our results also suggest that sell-side analysts add value by providing buy-side analysts with in-depth industry knowledge and access to company management.
Original language | English (US) |
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Pages (from-to) | 139-156 |
Number of pages | 18 |
Journal | Journal of Accounting and Economics |
Volume | 62 |
Issue number | 1 |
DOIs | |
State | Published - Aug 1 2016 |
Keywords
- Buy-side analysts
- Compensation
- Industry knowledge JEL Classifications: G10, G11, G23, M40
- Private communication
- Sell-side analysts
- Stock recommendations
ASJC Scopus subject areas
- Accounting
- Economics and Econometrics
- Finance