Career Concerns of Banking Analysts
Horton, J; Serafeim, G; Wu, S
Date: 29 March 2017
Journal
Journal of Accounting and Economics
Publisher
Elsevier
Publisher DOI
Abstract
We study how career concerns influence banking analysts’ forecasts. Banking analysts’ first
(last) earnings forecast of the year is relatively more optimistic (pessimistic) for a bank that
could be their future employer. This pattern is not observed when the same analysts forecast
earnings of banks unlikely to be their future employer. ...
We study how career concerns influence banking analysts’ forecasts. Banking analysts’ first
(last) earnings forecast of the year is relatively more optimistic (pessimistic) for a bank that
could be their future employer. This pattern is not observed when the same analysts forecast
earnings of banks unlikely to be their future employer. We use the Global Settlement as an
exogenous shock on career concerns and show that this forecast pattern is more pronounced
after the Settlement. Moreover, we find evidence that more biased analysts in their forecasts
of potential future employers are more likely to move to a higher reputation bank.
Finance and Accounting
Faculty of Environment, Science and Economy
Item views 0
Full item downloads 0