Do Sell-Side Analysts Say "Buy" While Whispering "Sell"? / David Hirshleifer, Yushui Shi, Weili Wu.

Format:

Book

Author/Creator:

Hirshleifer, David.

Contributor:

National Bureau of Economic Research.

Shi, Yushui.

Wu, Weili.

Series:

Working Paper Series (National Bureau of Economic Research) no. w30032.

NBER working paper series no. w30032

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2022.

Summary:

We examine how equity analysts disclose different information to the public versus to fund managers to whom they are connected, focusing on cases in which analysts publicly recommend the stock but their connected funds sell it. We measure favor trading using fund managers' votes for analysts in a Chinese "star analyst" competition. Managers are more likely to vote for analysts who exhibit greater "say-buy/whisper-sell" behavior toward these managers. This suggests that analysts introduce noise in their public recommendations, thereby maintaining the value of their private advice to funds. Our findings help explain several empirical puzzles about analyst public recommendations.

Notes:

Print version record

May 2022.