Financial analysts' forecasts and stock recommendations: A review of the research

Sundaresh Ramnath, Steve Rock, Philip B. Shane

Research output: Contribution to journalReview articlepeer-review

29 Scopus citations


This surveys reviews research regarding the role of financial analysts in capital markets. The survey builds on the perspectives provided by Schipper (1991) and Brown (1993). We categorize papers published mainly since 1992 and selectively discuss aspects of these papers that address or suggest key research topics of ongoing interest in seven broad areas: analysts' decision processes, the determinants of analyst expertise and distributions of individual analysts' forecasts, the informativeness of analysts' research outputs, analyst and market efficiency with respect to information, effects of analysts' economic incentives on their research outputs, effects of the institutional and regulatory environment (including cross-country comparisons), and the limitations of databases and various research paradigms.

Original languageEnglish (US)
Pages (from-to)311-421
Number of pages111
JournalFoundations and Trends in Finance
Issue number4
StatePublished - 2006

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


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