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    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.

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Analysts' stock recommendations, earnings growth and risk

Research output: Contribution to journalJournal article

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Analysts' stock recommendations, earnings growth and risk. / Peasnell, Kenneth Vincent; Yin, Yuan; Lubberink, Martien.

In: Accounting and Finance, Vol. 58, No. 1, 03.2018, p. 217-254.

Research output: Contribution to journalJournal article

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Peasnell, Kenneth Vincent ; Yin, Yuan ; Lubberink, Martien. / Analysts' stock recommendations, earnings growth and risk. In: Accounting and Finance. 2018 ; Vol. 58, No. 1. pp. 217-254.

Bibtex

@article{cca1a7dfd84d44ba90975cd23049b812,
title = "Analysts' stock recommendations, earnings growth and risk",
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.",
keywords = "Long-term growth forecast, Nonlinearity, Really long-term growth, Stock price volatility, Stock recommendations",
author = "Peasnell, {Kenneth Vincent} and Yuan Yin and Martien Lubberink",
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.",
year = "2018",
month = "3",
doi = "10.1111/acfi.12202",
language = "English",
volume = "58",
pages = "217--254",
journal = "Accounting and Finance",
issn = "0810-5391",
publisher = "Wiley-Blackwell",
number = "1",

}

RIS

TY - JOUR

T1 - Analysts' stock recommendations, earnings growth and risk

AU - Peasnell, Kenneth Vincent

AU - Yin, Yuan

AU - Lubberink, Martien

N1 - 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.

PY - 2018/3

Y1 - 2018/3

N2 - 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.

AB - 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.

KW - Long-term growth forecast

KW - Nonlinearity

KW - Really long-term growth

KW - Stock price volatility

KW - Stock recommendations

U2 - 10.1111/acfi.12202

DO - 10.1111/acfi.12202

M3 - Journal article

VL - 58

SP - 217

EP - 254

JO - Accounting and Finance

JF - Accounting and Finance

SN - 0810-5391

IS - 1

ER -