The financial analyst forecasting literature: A taxonomy with suggestions for further research

Sundaresh Ramnath, Steve Rock, Philip Shane

Research output: Contribution to journalArticlepeer-review

287 Scopus citations


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 languageEnglish (US)
Pages (from-to)34-75
Number of pages42
JournalInternational Journal of Forecasting
Issue number1
StatePublished - Jan 2008


  • 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


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