Business Commons^™

Favorability Of Financial And Nonfinancial Performance Measures And Analysts' Recommendations, Thomas F. Lewis Jr

Theses and Dissertations

This study investigates the extent to which sell-side analysts make full use of available financial and nonfinancial information signals in formulating stock recommendations. Prior research shows that investors rely strongly on sell-side analysts’ recommendations and that sell-side analysts pay considerable attention to nonfinancial measures in making their decisions. However, prior research has primarily focused on the mere presence of nonfinancial measures and not the extent to which the direction of such measures (i.e. favorability) is associated with firm value, or assessed the extent to which any interaction between financial measures and the direction of nonfinancial measures may influence analysts in …