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Smart Learning: Information Role of Leading Security Analysts

Advances in Pacific Basin Business, Economics and Finance

ISBN: 978-1-83753-865-2, eISBN: 978-1-83753-864-5

Publication date: 4 April 2024

Abstract

Findings in the literature indicate leading financial analysts attract high levels of market attention and provide more accurate earnings forecasts prior to becoming all-star analysts. Furthermore, these analysts significantly impact the investment decisions of other market participants and thus the market price of assets. Therefore, this study examines the information role of leading financial analysts and identifies two significant conclusions. First, the positive outcomes of these analyst leaders are more informative and attract more followers. Second, informational herding by followers of these analysts is not as naïve as suggested in previous studies, as followers who smartly use information from analyst leaders tend to perform better. We also find that analysts who practice smart learning by studying and selectively employing analyst-leader decisions achieve better career outcomes.

Keywords

Citation

Huang, C.-W., Lin, C.-Y. and Yu, C.-T. (2024), "Smart Learning: Information Role of Leading Security Analysts", Lee, C.-F. and Yu, M.-T. (Ed.) Advances in Pacific Basin Business, Economics and Finance (Advances in Pacific Basin Business, Economics and Finance, Vol. 12), Emerald Publishing Limited, Leeds, pp. 111-123. https://doi.org/10.1108/S2514-465020240000012004

Publisher

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Emerald Publishing Limited

Copyright © 2024 Chia-Wei Huang, Chih-Yen Lin and Chin-Te Yu. Published under exclusive licence by Emerald Publishing Limited