Briefings

Week InReview: February 8, 2019

Anomalies.

"Researchers found that following the 9/11 terrorist attacks, market reactions weakened for forecasts from analysts with Middle Eastern surnames. They also found that following the French and German governments' opposition to the US-led Iraq War, the US market reactions weakened for analysts with French or German surnames. This effect was stronger in firms with lower institutional ownership and for analysts with non-American first names.

"The researchers measured surname favourability using the US historical immigration records to identify countries of origin associated with a particular surname and the Gallup survey data on Americans' favorability toward foreign countries."

Stock market shows greater reaction to forecasts by analysts with favorable surnames

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