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How does past forecast behavior affect analysts' employment outcome?

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We study the relationship of sell-side analysts’ performance and their employment outcomes in the U.S. from 1983 to 2013. Analysts with a weak accuracy score are more likely to leave the job and less likely to experience a job-upgrade. Controlling for accuracy and experience, bolder and younger analysts are also more likely to experience job-termination. Additionally an Institutional Investors’ all-star has a lower chance of job-termination in case of a weak performance. Finally from 2003 onwards, after Wall Street’s regulation enforcement, employment outcome becomes less sensitive to an analyst’s past performance.

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