Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/41373
Authors: 
Frey, Stefan
Herbst, Patrick
Year of Publication: 
2010
Series/Report no.: 
CFR working paper 10-10
Abstract: 
We present evidence of the impact of buy-side analysts on the behavior and performance of fund managers. Using data provided by a large global asset manager, we relate buy-side analysts' recommendations to fund transactions on a daily basis. Our results show that buy-side analysts have a significant influence on trading decisions: Fund managers almost certainly follow recent recommendation revisions in their trades. Fund flows and sell-side recommendations matter as well, but to a lesser extent. 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.
Subjects: 
buy-side analysts
analyst recommendations
mutual funds
investment decisions
investment performance
JEL: 
G23
G11
G29
M41
Document Type: 
Working Paper

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