@article{cacdd1f595ff42b78312a72b39791566,
title = "An analyst by any other surname: Surname favorability and market reaction to analyst forecasts",
abstract = "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{\textquoteright} 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.",
keywords = "Earnings forecast, Equity analyst, Market reaction, Motivated reasoning, Surname favorability",
author = "Jung, {Jay Heon} and Alok Kumar and Lim, {Sonya S.} and Yoo, {Choong Yuel}",
note = "Funding Information: We appreciate helpful comments and suggestions from Michelle Hanlon (editor), Jeffrey Hales (referee), Renee Adams, Kristian Allee, Karthik Balakrishnan, Mary Barth, Pawel Bilinski, Brian Bushee, Shuping Chen, Michael Clement, Justin Cox, Henrik Cronqvist, Claudia Custodio, Peter Easton, Robert Freeman, Eric Hirst, Ole-Kristian Hope, Byoung-Hyoun Hwang, Ross Jennings, Bjorn Jorgensen, Oğuzhan Karaka{\c s}, Seil Kim, Yongtae Kim, S.P. Kothari, Byungjin Kwak, Xi Li, Kun Liu, Yi Luo, Stanimir Markov, Ronald Masulis, John McInnis, Lillian Mills, Peter Pope, Tarun Ramadorai, Lakshmanan Shivakumar, Oliver Spalt, Siew Hong Teoh, Anh Tran, Jennifer Wu Tucker, İrem Tuna, Paolo Volpin, Brian White, Yong Yu, and seminar participants at Cass Business School, IE Business School, Lancaster University, London School of Economics, SKKU Business School, University of Exeter, University of Texas at Austin, University of Texas at Dallas, Yonsei University, the 2017 AAA Annual Meeting, the 2017 AsianFA Conference, the 2017 CFMA Conference, the 2017 EAA Annual Congress, the 2017 FMA Annual Meeting, the 2017 KAIST-KU Joint Accounting Workshop, and the 2019 FARS Midyear Meeting. We are responsible for all remaining errors and omissions. Financial support from the KAIST Internal Research Grant and the 2018 Cass Business School Research Grant are gratefully acknowledged. Funding Information: We appreciate helpful comments and suggestions from Michelle Hanlon (editor), Jeffrey Hales (referee), Renee Adams, Kristian Allee, Karthik Balakrishnan, Mary Barth, Pawel Bilinski, Brian Bushee, Shuping Chen, Michael Clement, Justin Cox, Henrik Cronqvist, Claudia Custodio, Peter Easton, Robert Freeman, Eric Hirst, Ole-Kristian Hope, Byoung-Hyoun Hwang, Ross Jennings, Bjorn Jorgensen, O?uzhan Karaka?, Seil Kim, Yongtae Kim, S.P. Kothari, Byungjin Kwak, Xi Li, Kun Liu, Yi Luo, Stanimir Markov, Ronald Masulis, John McInnis, Lillian Mills, Peter Pope, Tarun Ramadorai, Lakshmanan Shivakumar, Oliver Spalt, Siew Hong Teoh, Anh Tran, Jennifer Wu Tucker, ?rem Tuna, Paolo Volpin, Brian White, Yong Yu, and seminar participants at Cass Business School, IE Business School, Lancaster University, London School of Economics, SKKU Business School, University of Exeter, University of Texas at Austin, University of Texas at Dallas, Yonsei University, the 2017 AAA Annual Meeting, the 2017 AsianFA Conference, the 2017 CFMA Conference, the 2017 EAA Annual Congress, the 2017 FMA Annual Meeting, the 2017 KAIST-KU Joint Accounting Workshop, and the 2019 FARS Midyear Meeting. We are responsible for all remaining errors and omissions. Financial support from the KAIST Internal Research Grant and the 2018 Cass Business School Research Grant are gratefully acknowledged. Funding Information: We appreciate helpful comments and suggestions from Michelle Hanlon (editor), Jeffrey Hales (referee), Renee Adams, Kristian Allee, Karthik Balakrishnan, Mary Barth, Pawel Bilinski, Brian Bushee, Shuping Chen, Michael Clement, Justin Cox, Henrik Cronqvist, Claudia Custodio, Peter Easton, Robert Freeman, Eric Hirst, Ole-Kristian Hope, Byoung-Hyoun Hwang, Ross Jennings, Bjorn Jorgensen, Oğuzhan Karaka{\c s} Seil Kim, Yongtae Kim, S.P. Kothari, Byungjin Kwak, Xi Li, Kun Liu, Yi Luo, Stanimir Markov, Ronald Masulis, John McInnis, Lillian Mills, Peter Pope, Tarun Ramadorai, Lakshmanan Shivakumar, Oliver Spalt, Siew Hong Teoh, Anh Tran, Jennifer Wu Tucker, İrem Tuna, Paolo Volpin, Brian White, Yong Yu, and seminar participants at Cass Business School, IE Business School, Lancaster University, London School of Economics, SKKU Business School, University of Exeter, University of Texas at Austin, University of Texas at Dallas, Yonsei University, the 2017 AAA Annual Meeting, the 2017 AsianFA Conference, the 2017 CFMA Conference, the 2017 EAA Annual Congress, the 2017 FMA Annual Meeting, the 2017 KAIST-KU Joint Accounting Workshop, and the 2019 FARS Midyear Meeting. We are responsible for all remaining errors and omissions. Financial support from the KAIST Internal Research Grant and the 2018 Cass Business School Research Grant are gratefully acknowledged. Publisher Copyright: {\textcopyright} 2019 Elsevier B.V.",
year = "2019",
month = apr,
day = "1",
doi = "10.1016/j.jacceco.2019.02.002",
language = "English (US)",
volume = "67",
pages = "306--335",
journal = "Journal of Accounting and Economics",
issn = "0165-4101",
publisher = "Elsevier",
number = "2-3",
}