סמינר במימון חשבונאות

: Gil Aharoni University of Melbourne

Abstract: We find that direct competition among star analysts plays a key role in their forecast accuracy. When two or more star analysts cover the same stock (battleground stock), they are roughly 20% more accurate than instances in which only one star covers a firm. Using an exogenous shock to competition among star analysts, our results suggest that the higher accuracy in battleground stocks is not driven by star analysts’ ability to pick stocks with a better information environment. We also document that annual rankings from Institutional Investor magazine are mainly based on star analysts’ performance in battleground stocks.

The article will be  available from the finance-accounting seminar website:

https://en-recanati.tau.ac.il/Finance-Accounting-Seminars