There are significant differences among sell-side analysts in how frequently they revise recommendations. We show that much of this variation is an analyst-individual trait. Analysts who change recommendations more slowly make recommendations that are more influential and generate better portfolio returns. Slower-revising analysts tend to change recommendations following corporate news that are harder to interpret by non-stock experts, and our evidence suggests that their investment value derives from their ability to better interpret hard-to-assess information. On average, analysts change recommendations less frequently as their career progresses; however, recommendation speed-style is the dominant predictor of their recommendation value. Lien vers l'article
BOULLAND, R., ORNTHANALAI, C. and WOMACK, K.L. (2022). Speed and Expertise in Stock Picking: Older, Slower, and Wiser? Journal of Financial and Quantitative Analysis, In press, pp. 1-53.