Abstract
This paper develops a taxonomy of research examining the role of financial analysts in capital markets. The paper builds on the perspectives provided by Schipper [Schipper, K. (1991). Analysts' forecasts. Accounting Horizons, 5, 105-131] and Brown [Brown, L. (1993). Earnings forecasting research: Its implications for capital markets research. International Journal of Forecasting, 9, 295-320]. We categorize papers published since 1992, describe the research questions addressed, and suggest avenues for further research in seven broad areas: (1) analysts' decision processes; (2) the nature of analyst expertise and the distributions of earnings forecasts; (3) the information content of analyst research; (4) analyst and market efficiency; (5) analysts' incentives and behavioral biases; (6) the effects of the institutional and regulatory environment (including cross-country comparisons); and (7) research design issues.
Original language | English (US) |
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Pages (from-to) | 34-75 |
Number of pages | 42 |
Journal | International Journal of Forecasting |
Volume | 24 |
Issue number | 1 |
DOIs | |
State | Published - Jan 1 2008 |
Keywords
- Analyst decision processes
- Analyst expertise
- Analyst inefficiency
- Analyst research reports
- Analyst stock recommendations
- Analysts' incentives
- Earnings forecasting
- Financial analyst literature review
- Financial analysts
- Financial markets
- Forecast bias
- Stock price forecasts
ASJC Scopus subject areas
- Business and International Management