Sell-Side Analysts' Benchmarks

• 成果类型: Article
• 署名作者: Kadan, Ohad; Madureira, Leonardo; Wang, Rong; Zach, Tzachi
• 署名单位: Washington University (WUSTL); University System of Ohio; Case Western Reserve University; Singapore Management University; University System of Ohio; Ohio State University
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr-52446
• 发表日期: 2020
• 页码: 211-232
• 关键词: INVESTMENT BANKS; OF-INTEREST; recommendations

摘要

Sell-side analysts employ different benchmarks when defining their recommendations. A buy for some brokers means the stock is expected to outperform its industry, while for other brokers, it means the stock is expected to outperform the market or some return threshold. We show that these stated benchmarks have implications for the distribution of recommendations, price reactions to recommendations, and the investment value of recommendations. We conclude that, depending on the question, academics may need to account for the benchmarks when studying analysts' outputs, and investors may find the benchmarks beneficial in interpreting analysts' advice.