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Gender heterogeneity in the sell-side analyst recommendation issuing process

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  • Bosquet, Katrien
  • de Goeij, Peter
  • Smedts, Kristien

Abstract

Using analyst stock recommendations issued between January 1996 and December 2006 we show that the odds for female financial analysts to issue optimistic investment advice is 40% lower than for male analysts. Although 17% of our sample of analysts is female, 48% is employed by a top financial institution and for them the odds to issue optimistic recommendations are 16% lower than their male colleagues. The odds are even 30% lower than their female counterparts at non-top institutions. The observed gender heterogeneity cannot be attributed to differences in the risk characteristics of recommended stocks, experience or task complexity.

Suggested Citation

  • Bosquet, Katrien & de Goeij, Peter & Smedts, Kristien, 2014. "Gender heterogeneity in the sell-side analyst recommendation issuing process," Finance Research Letters, Elsevier, vol. 11(2), pages 104-111.
    • Handle: RePEc:eee:finlet:v:11:y:2014:i:2:p:104-111
    DOI: 10.1016/j.frl.2013.11.004
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    3. Susmita Dian Indiraswari & Bambang Subroto & Imam Subekti, 2020. "The effect of compensation on accounting fraud with the genders variety of directors as a moderation variable," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(2), pages 191-201, March.
    4. Gu, Pu, 2020. "The effects of social bias against female analysts on markets," Journal of Corporate Finance, Elsevier, vol. 64(C).
    5. Eugene Soon Lee Kang & Shun Yin Lam, 2017. "Contingent effects of firm and employee reputations on professional advice adoption," Service Business, Springer;Pan-Pacific Business Association, vol. 11(2), pages 345-373, June.
    6. Harris, Oneil & Karl, J. Bradley & Lawrence, Ericka, 2019. "CEO compensation and earnings management: Does gender really matters?," Journal of Business Research, Elsevier, vol. 98(C), pages 1-14.
    7. Kyaw, Khine & Olugbode, Mojisola & Petracci, Barbara, 2015. "Does gender diverse board mean less earnings management?," Finance Research Letters, Elsevier, vol. 14(C), pages 135-141.
    8. Wang, Yang & Zhang, Yifei & Kang, Wei & Ahmed, Ahmed Hassan, 2022. "Female analysts and COVID-19 corporate donation," Emerging Markets Review, Elsevier, vol. 53(C).
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    More about this item

    Keywords

    Financial analysts; Recommendation issuing process; Gender heterogeneity;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations

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