Financial analysts' performance: Sector versus country specialization

Review of Financial Studies

Volumn 22, Issue 5, 2009, Pages 2087-2131

  Sonney, Frédéric ^a,b  

^a UNIVERSITY OF NEUCHÂTEL   (Switzerland)

^b BCV ^*  (Switzerland)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 79957857949     PISSN: 08939454     EISSN: 14657368     Source Type: Journal    
DOI: 10.1093/rfs/hhm024     Document Type: Article

References (42)

1. Adjaouté, K., and J.-P. Danthine. 2003. European Financial Integration and Equity Returns: A Theory Based Assessment, in V. Gaspar, P. Hartmann, and O. Sleijpen (eds), The Transformation of the European Financial System. Proceedings of the 2nd ECB Central Banking Conference, ECB, Frankfurt, Chapter 5.
2. Baca, S. P., B. L. Garbe, and R. A. Weiss. 2000. The Rise of Sector Effects in Major Equity Markets. Financial Analysts Journal 56:34-40.
3. Bae, K. H., R. M. Stulz, and H. Tan. 2006. Do Local Analysts Know More? A Cross-Country Study of the Performance of Local Analysts and Foreign Analysts. Working paper, Columbus: Ohio State University.
4. Barber, B., R. Lehavy, M. McNichols, and B. Trueman. 2003. Reassessing the Returns to Analysts' Stock Recommendations. Financial Analysts Journal 59:88-96.
5. Barker, R. G. 1998. The Market for Information: Evidence From Finance Directors, Analysts and Fund Managers. Accounting and Business Research 29:3-20.
6. Beckers, S., G. Connor, and R. Curds. 1996. National Versus Global Influences on Equity Returns. Financial Analysts Journal 52:31-9.
7. Bekaert, G., R. J. Hodrick, and X. Zhang. 2005. International Stock Return Comovements. NBER Working Paper 11906, December.
8. Bolliger, G. 2004. The Characteristics of Individual Analysts' Forecasts in Europe. Journal of Banking and Finance 28:2283-309.
9. Brennan, M. J., and H. H. Cao. 1997. International Portfolio Investment Flows. Journal of Finance 52:1851-80.
10. Brooks, R., and M. Del Negro. 2004. The Rise in Comovement across National Stock Markets: Market Integration or IT Bubble? Journal of Empirical Finance 11:649-80.
11. Catao, L., and A. Timmermann. 2003. Country and Industry Dynamics in Stock Returns. CEPR Discussion Paper No. 4368, April.
12. Cavaglia, S., C. Brightman, and M. Aked. 2000. The Increasing Importance of Industry Factors. Financial Analysts Journal 56:41-54.
13. Clement, M. B. 1999. Analyst Forecast Accuracy: Do Ability, Resources, and Portfolio Complexity Matter? Journal of Accounting and Economics 27:285-303.
14. Cooper, R. A., T. E. Day, and C. M. Lewis. 2001. Following the Leader: A Study of Individual Analysts' Earnings Forecasts. Journal of Financial Economics 61:383-416.
15. Coval, J., and T. Moskowitz. 2001. The Geography of Investment: Informed Trading and Asset Prices. Journal of Political Economy 109:811-41.
16. Galati, G., and K. Tsatsaronis. 2001. The Impact of the Euro on Europe's Financial Markets. BIS Working Paper No. 100, July.
17. Greene, W. H. 2003. Econometric Analysis (5th ed.). New Jersey: Prentice Hall.
18. Griffin, J. M., and A. G. Karolyi. 1998. Another Look at the Role of the Industrial Structure of Markets for International Diversification Strategies. Journal of Financial Economics 50:351-73.
19. Grinblatt, M., and M. Keloharju. 2001. How Distance, Language, and Culture Influence Stockholdings and Trades. Journal of Finance 56:1053-73.
20. Hau, H. 2001. Location Matters: An Examination of Trading Profits. Journal of Finance 56:1959-83.
21. Hawawini, G., V. Subramanian, and P. Verdin. 2003. Is Performance Driven by Industry-or Firm-Specific Factors? A New Look at the Evidence. Strategic Management Journal 24:1-16.
22. Heckman, J. J. 1979. Sample Selection as a Specification Error. Econometrica 47:153-61.
23. Heston, S. L., and G. K. Rouwenhorst. 1994. Does Industrial Structure Explain the Benefits of International Diversification? Journal of Financial Economics 36:3-27.
24. Heston, S. L., and G. K. Rouwenhorst. 1995. Industry and Country Effects in International Stock Returns. Journal of Portfolio Management 21:53-8.
25. Hong, H., and J. Kubik. 2003. Analyzing the Analysts: Career Concerns and Biased Earnings Forecasts. Journal of Finance 58:313-51.
26. Hong, H., J. Kubik, and A. Solomon. 2000. Security Analysts' Career Concerns and Herding of Earnings Forecasts. Rand Journal of Economics 31:121-44.
27. Ivković, Z., and S. Weisbenner. 2005. Local Does as Local Is: Information Content of the Geography of Individual Investors' Common Stock Investments. Journal of Finance 60:267-306.
28. Jacob, J., T. Z. Lys, and M. A. Neale. 1999. Expertise in Forecasting Performance of Security Analysts. Journal of Accounting and Economics 28:51-82.
29. Kennedy, P. 1986. Interpreting Dummy Variables. Review of Economics and Statistics 68:174-5.
30. Kini, O., S. Mian, M. Rebello, and A. Venkateswaran. 2003. On the Determinants of International Analyst Research Coverage. Working paper, Georgia State University.
31. Magee, R. P. 1974. Industry-Wide Commonalities in Earnings. Journal of Accounting Research 12:270-87.
32. Malloy, C. J. 2005. The Geography of Equity Analysis. Journal of Finance 60:719-55.
33. McGahan, A. M., and M. E. Porter. 1997. How Much Does Industry Matter, Really? Strategic Management Journal 18:15-30.
34. Mikhail, M. B., B. R. Walther, and R. H. Willis. 1997. Do Security Analysts Improve their Performance with Experience? Journal of Accounting Research 35:131-57.
35. O'Brien, P. C. 1990. Forecast Accuracy of Individual Analysts in Nine Industries. Journal of Accounting Research 28:286-304.
36. Orpurt, S. F. 2003. Local Asymmetric Information Advantages: International Evidence from Analysts' European Firm Earnings Forecasts. Working Paper 2003/04-01, School of Accountancy, Singapore Management University, August.
37. Powell, T. C. 1996. How Much Does Industry Matter? An Alternative Empirical Test. Strategic Management Journal 17:323-34.
38. Rumelt, R. P. 1991. How Much Does Industry Matter? Strategic Management Journal 12:167-85.
39. Schmalensee, R. 1985. Do Markets Differ Much? American Economic Review 75:341-51.
40. Stickel, S. E. 1992. Reputation and Performance Among Security Analysts. Journal of Finance 47:1811-36.
41. Suits, D. 1984. Dummy Variables: Mechanics v. Interpretation. Review of Economics and Statistics 66:117-80.
42. Wooldridge, J. M. 1995. Selection Corrections for Panel Data Models under Conditional Mean Independence Assumptions. Journal of Econometrics 68:115-32.