Trading on Gender Heterogeneity in Analyst Recommendations: A Profitable Investment Strategy?

26 Pages Posted: 19 Oct 2011

See all articles by Katrien Bosquet

Katrien Bosquet

KU Leuven - Faculty of Business and Economics (FEB)

Peter de Goeij

Tilburg University

Kristien Smedts

KU Leuven - Faculty of Business and Economics (FEB)

Date Written: October 19, 2011

Abstract

Using analysts' stock recommendations this paper shows gender heterogeneity in investment advice. The odds for female financial analysts to issue optimistic recommendations are much lower than the odds for male analysts. However, an investor cannot profit from the observed gender differences. Comparing monthly rebalanced portfolios of stocks recommended by female analysts and by male analysts, we conclude that the investor can not convert the observed gender differences in recommendations into a profitable investment strategy.

Keywords: financial analysts, recommendations, gender, portfolio investment

JEL Classification: G11, G14, G24, J44

Suggested Citation

Bosquet, Katrien and de Goeij, Peter and Smedts, Kristien, Trading on Gender Heterogeneity in Analyst Recommendations: A Profitable Investment Strategy? (October 19, 2011). Available at SSRN: https://ssrn.com/abstract=1946187 or http://dx.doi.org/10.2139/ssrn.1946187

Katrien Bosquet (Contact Author)

KU Leuven - Faculty of Business and Economics (FEB) ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

Peter De Goeij

Tilburg University ( email )

P.O. Box 90153
Room I607
Tilburg, Noord-Brabant 5000 LE
Netherlands
+31134662083 (Phone)

Kristien Smedts

KU Leuven - Faculty of Business and Economics (FEB) ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

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