We find that financial analysts provide more thorough forecasts when firms’ institutional investors are distracted (i.e., when firms are neglected). We establish the causality of the effect by identifying exogenous shocks leading to institutional investor distraction following Kempf, Manconi,...

We study financial analysts’ recommendation when firms receive contentious shareholder-sponsored proposals on governance-related issues. We find that analysts’ stock recommendations in the month immediately prior to the annual meeting (at which shareholder voting on contested proxy proposals...