Gender heterogeneity in the sell-side analyst recommendation issuing process

K. Bosquet, P.C. de Goeij, K. Smedts

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Using analyst stock recommendations issued between January 1996 and December 2006 we show that the odds for female financial analysts to issue optimistic investment advice is 40% lower than for male analysts. Although 17% of our sample of analysts is female, 48% is employed by a top financial institution and for them the odds to issue optimistic recommendations are 16% lower than their male colleagues. The odds are even 30% lower than their female counterparts at non-top institutions. The observed gender heterogeneity cannot be attributed to differences in the risk characteristics of recommended stocks, experience or task complexity.
Original languageEnglish
Pages (from-to)104-111
JournalFinance research letters
Volume11
Issue number2
DOIs
Publication statusPublished - Jun 2014

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Analyst recommendations
Sell-side analysts
Analysts
Stock recommendations
Task complexity
Risk characteristics
Financial institutions
Financial analysts

Keywords

  • financial analysts
  • recommendation issuing process
  • gender heterogeneity

Cite this

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Gender heterogeneity in the sell-side analyst recommendation issuing process. / Bosquet, K.; de Goeij, P.C.; Smedts, K.

In: Finance research letters, Vol. 11, No. 2, 06.2014, p. 104-111.

Research output: Contribution to journalArticleScientificpeer-review

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AU - de Goeij, P.C.

AU - Smedts, K.

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N2 - Using analyst stock recommendations issued between January 1996 and December 2006 we show that the odds for female financial analysts to issue optimistic investment advice is 40% lower than for male analysts. Although 17% of our sample of analysts is female, 48% is employed by a top financial institution and for them the odds to issue optimistic recommendations are 16% lower than their male colleagues. The odds are even 30% lower than their female counterparts at non-top institutions. The observed gender heterogeneity cannot be attributed to differences in the risk characteristics of recommended stocks, experience or task complexity.

AB - Using analyst stock recommendations issued between January 1996 and December 2006 we show that the odds for female financial analysts to issue optimistic investment advice is 40% lower than for male analysts. Although 17% of our sample of analysts is female, 48% is employed by a top financial institution and for them the odds to issue optimistic recommendations are 16% lower than their male colleagues. The odds are even 30% lower than their female counterparts at non-top institutions. The observed gender heterogeneity cannot be attributed to differences in the risk characteristics of recommended stocks, experience or task complexity.

KW - financial analysts

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