DOI
https://doi.org/10.25772/J2DE-JX87
Defense Date
2017
Document Type
Dissertation
Degree Name
Doctor of Philosophy
Department
Business
First Advisor
Benson Wier, Ph.D.
Second Advisor
Carolyn Norman, Ph.D.
Third Advisor
David Harless, Ph.D.
Fourth Advisor
Jason Brown, Ph.D.
Fifth Advisor
Jean Zhang, Ph.D.
Abstract
This study investigates the extent to which sell-side analysts make full use of available financial and nonfinancial information signals in formulating stock recommendations. Prior research shows that investors rely strongly on sell-side analysts’ recommendations and that sell-side analysts pay considerable attention to nonfinancial measures in making their decisions. However, prior research has primarily focused on the mere presence of nonfinancial measures and not the extent to which the direction of such measures (i.e. favorability) is associated with firm value, or assessed the extent to which any interaction between financial measures and the direction of nonfinancial measures may influence analysts in formulating stock recommendations. Using a data set hand-collected from annual proxy statements, I use ordered logistic regression analysis to provide a multivariate test of the relation between sell-side analyst recommendations, financial and context-specific nonfinancial measures. I find that analysts do incorporate the direction (favorability) of nonfinancial measures in formulating stock recommendations and that unfavorable nonfinancial measures attenuate positive financial information.
Rights
© The Author
Is Part Of
VCU University Archives
Is Part Of
VCU Theses and Dissertations
Date of Submission
4-19-2017