Which types of analyst firms are more optimistic?

• 成果类型: Article
• 署名作者: Cowen, A; Groysberg, B; Healy, P
• 署名单位: Harvard University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2005.09.001
• 发表日期: 2006
• 关键词: forecast accuracy; career concerns; OF-INTEREST; MARKET

摘要

Research optimism among securities analysts has been attributed to incentives provided by underwriting activities. We examine how analysts' forecast and recommendation optimism varies with the business activities used to fund research. We find that analysts at firms that funded research through underwriting and trading activities actually made less optimistic forecasts and recommendations than those at brokerage houses, who performed no underwriting. Optimism was particularly low for bulge underwriter firm analysts, implying that firm reputation reduces research optimism. There is also evidence that analysts at retail brokerage firms are more optimistic than those serving only institutional investors. We conclude that analyst optimism is at least partially driven by trading incentives. (c) 2006 Elsevier B.V. All rights reserved.