Defense Date


Document Type


Degree Name

Doctor of Philosophy



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.


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.


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