An analyst by any other surname: Surname favorability and market reaction to analyst forecasts

• 成果类型: Article
• 署名作者: Jung, Jay Heon; Kumar, Alok; Lim, Sonya S.; Yoo, Choong-Yuel
• 署名单位: University of London; City St Georges, University of London; University of Miami; DePaul University; Korea Advanced Institute of Science & Technology (KAIST)
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2019.02.002
• 发表日期: 2019
• 关键词: INVESTOR SOPHISTICATION; individual analysts; EARNINGS FORECASTS; cross-section; INFORMATION; accuracy; activation; GENDER; stereotypes; achievement

摘要

We find that forecast revisions by analysts with more favorable surnames elicit stronger market reactions. The effect is stronger among firms with lower institutional ownership and for analysts with non-American first names. Following the 9/11 terrorist attacks, and France and Germany's opposition to the Iraq War, revisions by analysts with Middle Eastern and French or German surnames, respectively, generated weaker market reaction. Surname favorability is not associated with forecast quality, but it has complementary effects with forecast performance on analysts' career outcomes. Surname favorability mitigates under-reaction to forecast revisions. These findings are distinct from the effects of ethnic, cultural proximity, or in-group bias. (C) 2019 Elsevier B.V. All rights reserved.