Publication: The Role of Stock Indices in Analyst Career Outcomes and Stock Recommendations
The Role of Stock Indices in Analyst Career Outcomes and Stock Recommendations
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Pohl, S., & Pursiainen, V. (2023). The Role of Stock Indices in Analyst Career Outcomes and Stock Recommendations (No. 23–50; Swiss Finance Institute Research Paper). https://doi.org/10.2139/ssrn.4414198
Abstract
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Random changes in firms' stock index membership have important implications on sell-side analysts' career outcomes. Covered firms moving from the bottom of Russell 1000 to the top of Russell 2000 significantly increase an analyst's likelihood of moving to a high-status broker or receiving a career-first All-Star Analyst nomination - particularly for early-career analysts. This is reflected in analyst recommendations. For firms that are just above the index threshold - that might move to Russell 2000 if their share price decreases slig
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Citations
Pohl, S., & Pursiainen, V. (2023). The Role of Stock Indices in Analyst Career Outcomes and Stock Recommendations (No. 23–50; Swiss Finance Institute Research Paper). https://doi.org/10.2139/ssrn.4414198