IDEAS home Printed from
   My bibliography  Save this paper

The value of analysts’ recommendations and the organization of financial research


  • Salva, C.
  • Sonney, F.

    (Vlerick Leuven Gent Management School)


Brokerage houses usually organize their research activities by country or economic sector. We evaluate which research structure provides most value to investors. To do so, we study the relative information content of recommendations issued by country-specialized analysts and sector-specialized analysts. Our findings show that the former issue more valuable recommendations. The strength of country-specific commonalities explains at least part of the better performance of country-specialized financial analysts. Surprisingly, although analysts’ geographic location has been shown in the literature to be a determinant of earnings forecast accuracy, it is not a source of a comparative advantage when it comes to stock recommendations.

Suggested Citation

  • Salva, C. & Sonney, F., 2009. "The value of analysts’ recommendations and the organization of financial research," Vlerick Leuven Gent Management School Working Paper Series 2009-10, Vlerick Leuven Gent Management School.
  • Handle: RePEc:vlg:vlgwps:2009-10

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    financial analysts; stock recommendations; country and sector factors; geography;

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G29 - Financial Economics - - Financial Institutions and Services - - - Other
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vlg:vlgwps:2009-10. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Isabelle Vandenbroere). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.