Industry Recommendations: Characteristics, Investment Value, and Relation to Firm Recommendations

• Main Authors: Kadan, Ohad, Leonardo, Madureira, WANG, Rong, Zach, Tzachi
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2010
• Subjects: Industry recommendation; Analysts; Market Efficiency; Financial analysts; Stock Recommendations; Industry Analysis; Corporate Finance; Portfolio and Security Analysis
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/2958; https://ink.library.smu.edu.sg/context/lkcsb_research/article/3957/viewcontent/ZachPaper092410.pdf
• Institution: Singapore Management University

We study analysts’ industry recommendations. We find that the distribution of industry recommendations is quite balanced. Analysts show more optimism towards industries with high levels of R&D, past profitability and past returns. Industry recommendations possess investment value as portfolios b...