What Drives Sell-Side Analyst Compensation at High-Status Investment Banks?

  title={What Drives Sell-Side Analyst Compensation at High-Status Investment Banks?},
  author={Boris Groysberg and Paul Healy and David A. Maber},
  journal={Journal of Accounting Research},
  • Boris Groysberg, Paul Healy, David A. Maber
  • Published 2011
  • Economics
  • Journal of Accounting Research
  • We use proprietary data from a major investment bank to investigate factors associated with analysts’ annual compensation. We find compensation to be positively related to "All-Star" recognition, investment-banking contributions, the size of analysts’ portfolios, and whether an analyst is identified as a top stock-picker by the Wall Street Journal. We find no evidence that compensation is related to earnings forecast accuracy. But consistent with prior studies, we find analyst turnover to be… CONTINUE READING
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