The Field of Investment Advice: The Social Forces That Govern Equity Analysts

• 成果类型: Article
• 署名作者: Millo, Yuval; Spence, Crawford; Valentine, James
• 署名单位: University of Warwick; University of London; King's College London; Marquette University
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/TAR-2021-0140
• 发表日期: 2023
• 页码: 457-477
• 关键词: SECURITIES ANALYSTS; information-content; recommendations; determinants; coverage; BEHAVIOR; work

摘要

Literature on equity analysts presents a conundrum: analysts are seen as influential market participants, yet researchers widely criticize them for their bias and inaccuracy. Studies drawing from economic frames struggle to explain this. Therefore, we develop a new conceptualization that positions analysts as actors operating in a social field. Drawing on a qualitative study involving 70 interviews with analysts and portfolio managers, we offer two broad insights. First, we identify long-term interpersonal and interinstitutional ties between buy-side and sell-side actors which contribute to social inertia in the field. Second, we illustrate how sell-side analysts' social environment is dichotomous, pushing some to converge with consensus estimates, while encouraging others to diverge. Taken as a whole, our findings contribute to the accounting literature by enriching our understanding of the social and institutional forces that govern analyst behavior.