Are Analyst “Top Picks” Informative?-Reference-Cited by-同舟云学术

Are Analyst “Top Picks” Informative?

Published:2023-12-23 Issue: Volume: Page:
ISSN:0893-9454
Container-title:The Review of Financial Studies
language:en
Short-container-title:

Author:

Birru Justin¹,Gokkaya Sinan²,Liu Xi³,Stulz René⁴

Affiliation:

1. Fisher College of Business, The Ohio State University , USA

2. Phil and Pat Muck College of Business, Ohio University , USA

3. Farmer School of Business, Miami University , USA

4. Fisher College of Business, The Ohio State University , USA , NBER, and ECGI

Abstract

Abstract Following the Global Settlement, analysts extensively use a top pick designation allowing for greater granularity of information among buy recommended stocks, but conflicts of interest can potentially influence this designation. Examining a novel sample of top picks, we find that a calendar-time portfolio of top picks generates an abnormal performance of 17.6% per year. Top picks have greater investment value than do buy recommendations and alternative analyst investment strategies. Both institutional and retail investors trade in response to top picks. However, only institutional investors appear to identify top picks that have greater investment value when they are announced.

Publisher

Oxford University Press (OUP)

Subject

Economics and Econometrics,Finance,Accounting

Link

https://academic.oup.com/rfs/advance-article-pdf/doi/10.1093/rfs/hhad099/56260863/hhad099.pdf

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