We investigate the joint effects of analyst reputation, uncertainty, and guidance news valence on analysts’ reliance on management guidance. We find that, compared to less reputable analysts, reputable analysts rely less on guidance when they issue earnings forecasts. This analyst reputation...

Regulators express concerns with investors’ unquestioning reliance on analysts’ recommendations, which prior research has shown to be associated with lower trading returns. Thus, regulators have published investor guides advising investors to conduct independent research and required analyst...

We conduct three experiments to investigate whether and why investors rely on analysts' stock recommendations, and how to mitigate potential overreliance. In Experiments 1 and 2, we find that investors who receive a buy (sell) recommendation judge a company to have higher (lower) investment...

In this study, we examine whether buy-side analysts' forecasts are biased when they cover stocks that are held by the mutual fund. Specifically, we conduct an experiment with buy-side analysts and fund managers where we manipulate whether the forecasts are released to colleagues and clients or...