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Barber, B. M., Lehavy, R., McNichols, M., & Trueman, B. (2006). Buys, Holds, and Sells: The Distribution of Investment Banks’ Stock Ratings and the Implications for the Profitability of Analysts’ Recommendations. Journal of Accounting and Economics, 41, 87-117.
https://doi.org/10.1016/j.jacceco.2005.10.001

has been cited by the following article:

• TITLE: Quantification of Firm-Analyst Relationship: Evidence from China

  AUTHORS: Jianlei Hou

  KEYWORDS: Firm-Analyst Relationship, Reciprocity, Stock Recommendation, Earnings Forecasting Performance, China

  JOURNAL NAME: Open Journal of Business and Management, Vol.10 No.4, July 28, 2022

  ABSTRACT: With a Chinese dataset of 166,689 research reports with 3014 stocks and 4510 analysts from 2007 to 2017, we quantify the firm-analyst relationship based on an informational characteristic-model of analyst coverage. Furtherly, we investigate the research rationality from the perspective of the reciprocity between analyst and listed firms by examining the impact of firm-analyst relationship on stock recommendation and earnings forecasting performance. Empirical results suggest that close relationship between analysts and firms’ managers may prompt security analysts to render relatively positive rating for target listed firms, which may get more firm-specific information for improving analysts’ earnings forecasting performance. Our paper provides an effective approach to quantifying the firm-analyst relationship, and contributes to the literature on the reciprocity between analysts and listed firms.