In this paper, we use an analyst’s coverage portfolio as the unit of analysis and argue that the linkage among the portfolio firms can provide useful information for analyst forecasts at the portfolio level. In particular, the geographic overlap in the portfolio firms’ global sales network...

Economic downturns create uncertainty about a firm's operations and make it disproportionately harder for outside market participants to assess the firm's prospects. We posit that in this environment, management earnings forecasts will be more informative to investors and analysts. Consistent...

We examine how economic downturns affect the value that market participants place on management earnings forecasts. We find that in downturns, news conveyed in management forecasts elicits larger stock price reactions and analyst forecast revisions, suggesting that analysts and investors place...

We find that the likelihood that a firm voluntarily provides an earnings forecast is sensitive to the extent to which other firms in the same geographic area provide earnings forecasts. This geographic peer effect in forecasting is stronger for firms owned by more local institutional investors,...

We estimate the dynamics of recommendations by financial analysts, uncovering the determinants of inertia in their recommendations. We provide overwhelming evidence that analysts revise recommendations reluctantly, introducing frictions to avoid frequent revisions. More generally, we...

We estimate the dynamics of recommendations by financial analysts, uncovering the determinants of inertia in their recommendations. We provide overwhelming evidence that analysts revise recommendations reluctantly, introducing frictions to avoid frequent revisions. More generally, we...