Abstract:
Using a comprehensive sample of investment recommendations from 1994 to 2005, we investigate differences in the performance, behavior, and career outcomes of male and female sell-side analysts. Compared to their male counterparts, we find that the recommendations of female analysts produce similar abnormal returns but significantly lower idiosyncratic risks, which suggest higher information ratios for the recommendations of female analysts. Female analysts also issue significantly less biased recommendations. Further, gender does not seem to negatively influence female analysts’ career outcomes as defined by their star rankings and job mobility among brokerage firms. In fact, being a female analyst seems to increase the likelihood of being listed among the prestigious Institutional Investor stars.
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