Political contributions and analyst behavior

D. Jiang, A. Kumar, Kelvin Law

Research output: Contribution to journalArticleScientificpeer-review

57 Citations (Scopus)


We show that the personal traits of analysts, as revealed by their political donations, influence their forecasting behavior and stock prices. Analysts who contribute primarily to the Republican Party adopt a more conservative forecasting style. Their earnings forecast revisions are less likely to deviate from the forecasts of other analysts and are less likely to be bold. Their stock recommendations also contain more modest upgrades and downgrades. Overall, these analysts produce better quality research, which is recognized and rewarded by their employers, institutional investors, and the media. Stock market participants, however, do not fully recognize their superior ability as the market reaction following revisions by these analysts is weaker.
Original languageEnglish
Pages (from-to)37-88
JournalReview of Accounting Studies
Issue number1
Early online date2015
Publication statusPublished - Mar 2016


  • equity analysts
  • political contribution
  • conservative analysts
  • forecasting style
  • market reaction


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