Please use this identifier to cite or link to this item: http://hdl.handle.net/1893/18435
Appears in Collections:Accounting and Finance Journal Articles
Peer Review Status: Refereed
Title: The Influence of Buy-side Analysts on Mutual Fund Trading
Authors: Frey, Stefan
Herbst, Patrick
Contact Email: patrick.herbst@stir.ac.uk
Keywords: Buy-side analysts
Analyst recommendations
Mutual funds
Investment decisions
Investment performance G23
G11
G29
M41
Issue Date: Dec-2014
Publisher: Elsevier
Citation: Frey S & Herbst P (2014) The Influence of Buy-side Analysts on Mutual Fund Trading, Journal of Banking and Finance, 49, pp. 442-458.
Abstract: We present evidence on the trading and performance impact of buy-side analysts. Using data provided by a large global asset manager, we relate buy-side analysts' recommendations to fund transactions on a daily basis. We show that buy-side analysts significantly influence trading decisions: Fund managers strongly follow recent recommendation revisions, even after controlling for other trading determinants. Positive abnormal returns to buy-side analysts' revisions are also reflected in the performance of mutual fund trades: Trades triggered by buy-side recommendations have higher returns than other trades. Overall, the impact of buy-side analysts is more pronounced than that of sell-side analysts.
Type: Journal Article
URI: http://hdl.handle.net/1893/18435
DOI Link: http://dx.doi.org/10.1016/j.jbankfin.2014.01.007
Rights: Published in The Journal of Banking and Finance by Elsevier; The Elsevier Policy is as follows: Authors retain the right to use the accepted author manuscript for personal use, internal institutional use and for permitted scholarly posting provided that these are not for purposes of commercial use or systematic distribution. An "accepted author manuscript" is the author’s version of the manuscript of an article that has been accepted for publication and which may include any author-incorporated changes suggested through the processes of submission processing, peer review, and editor-author communications.
Affiliation: Leibniz University of Hanover
Accounting and Finance

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