Which Types of Analyst Firms Are More Optimistic

  title={Which Types of Analyst Firms Are More Optimistic},
  author={Amanda P. Cowen and Boris Groysberg and Paul Healy},
  journal={Journal of Accounting and Economics},
  • Amanda P. Cowen, Boris Groysberg, Paul Healy
  • Published 2006
  • Business
  • Journal of Accounting and Economics
  • Abstract Research optimism among securities analysts has been attributed to incentives provided by underwriting activities. We examine how analysts’ forecast and recommendation optimism varies with the business activities used to fund research. We find that analysts at firms that funded research through underwriting and trading activities actually made less optimistic forecasts and recommendations than those at brokerage houses, who performed no underwriting. Optimism was particularly low for… CONTINUE READING
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