The activities of buy-side analysts and the determinants of their stock recommendations

Lawrence D. Brown, Andrew C. Call, Michael B. Clement, Nathan Y. Sharp

Research output: Contribution to journalArticlepeer-review

82 Scopus citations


We survey 344 buy-side analysts from 181 investment firms and conduct 16 detailed follow-up interviews to gain insights into the activities of buy-side analysts, including the determinants of their compensation, the inputs to their stock recommendations, their beliefs about financial reporting quality, and the role of sell-side analysts in buy-side research. One important finding is that 10-K or 10-Q reports are more useful than quarterly conference calls and management earnings guidance for determining buy-side analysts׳ stock recommendations. Our results also suggest that sell-side analysts add value by providing buy-side analysts with in-depth industry knowledge and access to company management.

Original languageEnglish (US)
Pages (from-to)139-156
Number of pages18
JournalJournal of Accounting and Economics
Issue number1
StatePublished - Aug 1 2016


  • Buy-side analysts
  • Compensation
  • Industry knowledge JEL Classifications: G10, G11, G23, M40
  • Private communication
  • Sell-side analysts
  • Stock recommendations

ASJC Scopus subject areas

  • Accounting
  • Economics and Econometrics
  • Finance


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