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Rising and Senior Stars in European Financial Analyst Rankings: The Talented and the Famous

Author

Listed:
  • Carole Gresse

    (Université Paris-Dauphine, DRM)

  • Laurence Porteu de la Morandière

    (Groupe ESC Pau - IRMAPE)

Abstract

Using Institutional Investors (I/I) and Extel rankings and I/B/E/S data for European analysts over 15 years, we show that European analyst rankings are determined more by popularity than by intrinsic skills, the first determinant of recognition being employer size. Becoming an I/I star is like joining a club: talent for issuing high-quality recommendations is required to be initially ranked but is irrelevant to being re-elected or reaching the top level. Our findings also underline the importance of analyst rankings’ design features. These features could probably be improved by reducing the impact of recognition in the election process.

Suggested Citation

  • Carole Gresse & Laurence Porteu de la Morandière, 2015. "Rising and Senior Stars in European Financial Analyst Rankings: The Talented and the Famous," Working Papers 01, Groupe ESC Pau, Research Department, revised Jan 2015.
    • Handle: RePEc:pau:wpaper:01
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    References listed on IDEAS

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