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.
- financial analysts
- recommendation issuing process
- gender heterogeneity
Bosquet, K., de Goeij, P. C., & Smedts, K. (2014). Gender heterogeneity in the sell-side analyst recommendation issuing process. Finance research letters, 11(2), 104-111. https://doi.org/10.1016/j.frl.2013.11.004