Download full text
(617.3Kb)
Citation Suggestion
Please use the following Persistent Identifier (PID) to cite this document:
https://nbn-resolving.org/urn:nbn:de:0168-ssoar-91986-6
Exports for your reference manager
Cultural Biases in Equity Analysis
[journal article]
Abstract A more positive cultural trust bias by an equity analyst's country of origin toward a firm's headquarter country is associated with significantly more positive stock recommendations. The cultural bias effect is stronger for eponymous firms whose names mention their home country and varies over time,... view more
A more positive cultural trust bias by an equity analyst's country of origin toward a firm's headquarter country is associated with significantly more positive stock recommendations. The cultural bias effect is stronger for eponymous firms whose names mention their home country and varies over time, increasing with negative sentiment. I find evidence of a negative North-South bias during the European debt crisis and United Kingdom-Europe divergence amid Brexit. Share price reactions to recommendations by more biased analysts are weaker, and more biased recommendations are worse predictors of monthly stock returns. More positively biased analysts also assign higher target prices.... view less
Keywords
Eurobarometer; prejudice; cultural factors; stock market; country of origin; enterprise; stock quotation
Classification
National Economy
Social Psychology
Free Keywords
Eurobarometer 1996-2018
Document language
English
Publication Year
2022
Page/Pages
p. 163-211
Journal
Journal of Finance, 77 (2022) 1
DOI
https://doi.org/10.1111/jofi.13095
ISSN
0022-1082
Status
Published Version; peer reviewed
Licence
Creative Commons - Attribution-Noncommercial-No Derivative Works 4.0