Home > Research > Publications & Outputs > Analysts' stock recommendations, earnings growt...

Electronic data

  • Analysts’ stock recommendations, earnings growth and risk FINAL VERSION

    Rights statement: This is the peer reviewed version of the following article:Peasnell, K. , Yin, Y. , Lubberink, M. and Wyatt, A. (2018), Analysts’ stock recommendations, earnings growth and risk. Account Finance, 58: 217-254. doi:10.1111/acfi.12202 which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/acfi.12202/abstract This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.

    Accepted author manuscript, 347 KB, PDF-document

    Available under license: CC BY-NC: Creative Commons Attribution-NonCommercial 4.0 International License

Links

Text available via DOI:

View graph of relations

Analysts' stock recommendations, earnings growth and risk

Research output: Contribution to journalJournal article

Published
<mark>Journal publication date</mark>03/2018
<mark>Journal</mark>Accounting and Finance
Issue number1
Volume58
Number of pages38
Pages (from-to)217-254
Publication statusPublished
Early online date16/02/16
Original languageEnglish

Abstract

A key output of sell-side analysts is their recommendations to investors as to whether they should, buy, hold or sell a company's shares. However, relatively little is known regarding the determinants of those recommendations. This study considers this question, presenting results that suggest that recommendations are dependent on analysts’ short-term and long-term earnings growth forecasts, as well as on proxies for the analysts’ unobservable views on earnings growth in the more distant future and risk. Furthermore, analysts who appear to incorporate earnings growth beyond the long-term growth forecast horizons and risk into their recommendation decisions make more profitable stock recommendations.

Bibliographic note

This is the peer reviewed version of the following article:Peasnell, K. , Yin, Y. , Lubberink, M. and Wyatt, A. (2018), Analysts’ stock recommendations, earnings growth and risk. Account Finance, 58: 217-254. doi:10.1111/acfi.12202 which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/acfi.12202/abstract This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.