The goal of this study is to penetrate analysts’ “black box” by providing new insights into the inputs analysts use to make their decisions and the incentives that influence these decisions. We survey 365 sell-side analysts and conduct 18 detailed follow-up interviews. Analysts indicate that industry knowledge is the single most important determinant of their compensation and the most important input to both their earnings forecasts and stock recommendations. They rate broker votes, a measure of client satisfaction, as the second most important factor in determining their compensation behind industry knowledge. Analysts report that private phone calls are the most useful form of contact they have with senior management, and that maintaining strong relationships with management is fundamental to their success. Overall, we believe the results of our study are beneficial to academic researchers, investors, and analysts.
Advertisement Disclosure: When you purchase through our sponsored links, we may earn a commission from our partners. By using this website you agree to our T&Cs.
Our Editorial Standards
At ValueWalk, we’re committed to providing accurate, research-backed information. Our editors go above and beyond to ensure our content is trustworthy and transparent.
Sheeraz Raza
Sheeraz is our COO (Chief - Operations), his primary duty is curating and editing of ValueWalk. He is main reason behind the rapid growth of the business. Sheeraz previously ran a taxation firm. He is an expert in technology, he has over 5.5 years of design, development and roll-out experience for SEO and SEM. - Email: sraza(at)www.valuewalk.com
Sheeraz is our COO (Chief - Operations), his primary duty is curating and editing of ValueWalk. He is main reason behind the rapid growth of the business. Sheeraz previously ran a taxation firm. He is an expert in technology, he has over 5.5 years of design, development and roll-out experience for SEO and SEM. - Email: sraza(at)www.valuewalk.com
Related news
Must Read
How to Invest in Stocks in 2025 – Beginner’s Guide
Investing in stocks can be a great way to improve your overall wealth – but...