Relative Comparison and Category Membership: The Case of Equity Analysts

References

• Angrist JD, Pischke J (2008) Mostly Harmless Econometrics: An Empiricist’s Companion (Princeton University Press, Princeton, NJ).Crossref, Google Scholar
• Asquith P, Mikhail M, Au A (2005) Information content of equity analyst reports. J. Financial Econom. 75:245–282.Crossref, Google Scholar
• Barber BM, Lehavy R, McNichols M, Trueman B (2006) Buys, holds and sells: The distribution of investment banks’ stock ratings and the implications for the profitability of analysts’ recommendations. J. Accounting Econom. 41:87–117.Crossref, Google Scholar
• Birger J (2002) Why analysts still matter: They are the lowest of the low, right? Their motives are suspect and their work has no real value to investor right? Wrong. CNNMoney (July 1) http://money.cnn.com/magazines/moneymag/moneymag_archive/2002/07/01/325008/index.htm.Google Scholar
• Blodget H (2004) What “buy” means. Slate (August 11) http://www.slate.com/id/2105024.Google Scholar
• Boni L, Womack K (2006) Analysts, industries, and price momentum. J. Financial Quant. Anal. 41:85–109.Crossref, Google Scholar
• Bradshaw M (2004) How do analysts use their earnings forecasts in generating stock recommendations? Accounting Rev. 79:25–50.Crossref, Google Scholar
• Brown LD, Call AC, Clement MB, Sharp NY (2013) Inside the “black box” of sell-side financial analysts. Working paper, Temple University, Philadelphia. http://ssrn.com/abstract=2228373.Crossref, Google Scholar
• Curry T, Fissel G, Hanweck G (2008) Equity market information, bank holding company risk, and market discipline. J. Banking Finance 32:807–819.Crossref, Google Scholar
• Dominion Bond Rating Service (2011) Methodology: Rating companies in the airline industry. Report, Dominion Bond Rating Service, Toronto. http://www.dbrs.com/research/242648/rating-companies-in-the-airline-industry.pdf.Google Scholar
• Dugar A, Nathan S (1995) The effect of investment banking relationships on financial analysts’ earnings forecasts and investment recommendations. Contemp. Accounting Res. 12:131–160.Crossref, Google Scholar
• Fleischer A (2009) Ambiguity and the equity of rating systems: United States brokerage firms, 1995–2000. Admin. Sci. Quart. 54:555–574.Crossref, Google Scholar
• Groysberg B (2010) Chasing Stars: The Myth of Talent and the Portability of Performance (Princeton University Press, Princeton, NJ).Crossref, Google Scholar
• Groysberg B, Healy P, Maber D (2011) What drives sell-side analyst compensation at high status investment banks? J. Accounting Res. 49:969–1000.Crossref, Google Scholar
• Guimaraes P, Portugal P (2010) A simple feasible procedure to fit high dimensional fixed effects. Stata J. 10:628–649.Google Scholar
• Hannan M (2010) Partiality of memberships in categories and audiences. Annual Rev. Sociol. 36:159–181.Crossref, Google Scholar
• Hayward M, Boeker W (1998) Power and conflicts of interest in professional firms: Evidence from investment banking. Admin. Sci. Quart. 43:1–22.Crossref, Google Scholar
• Hsee CK (1996) The evaluability hypothesis: An explanation for preference reversals between joint and separate evaluations of alternatives. Organ. Behav. Human Decision Processes 67:247–257.Crossref, Google Scholar
• Hsu G (2006) Jacks of all trades and masters of none: Audiences’ reactions to spanning genres in feature film production. Admin. Sci. Quart. 51:420–450.Crossref, Google Scholar
• Hsu G, Hannan M, Kocak O (2009) Multiple category memberships in markets: An integrative theory and two empirical tests. Amer. Sociol. Rev. 74:150–169.Crossref, Google Scholar
• Johnson M (1988) Comparability and hierarchical processing in multialternative choice. J. Consumer Res. 15:303–314.Crossref, Google Scholar
• Johnson M (1989) The differential processing of product category and noncomparable choice alternatives. J. Consumer Res. 16:300–309.Crossref, Google Scholar
• Keller KL, Aaker DA (1992) The effects of sequential introduction of brand extension research. J. Marketing Res. 29:35–50.Crossref, Google Scholar
• Kennedy M (2008) Getting counted: Markets, media and reality. Amer. Sociol. Rev. 73:270–295.Crossref, Google Scholar
• Kessler A (2004) Wall Street Meat: My Narrow Escape from the Stock Market Grinder (HarperCollins, New York).Google Scholar
• Kovács B, Hannan MT (2010) The consequences of category spanning depend on contrast. Hsu G, Negro G, Koçak O, eds. Categories in Markets: Origins and Evolution, Research in the Sociology of Organizations, Vol. 31 (Emerald Group Publishing, New York), 175–202.Crossref, Google Scholar
• Leclerc F, Hsee CK, Nunes JC (2005) Narrow focusing: Why the relative position of a good in its category matters more than it should. Marketing Sci. 24:194–205.Link, Google Scholar
• Lefkoff-Hagius R, Mason C (1993) Characteristic, beneficial and image attributes in consumer judgments of similarity and preference. J. Consumer Res. 20:100–110.Crossref, Google Scholar
• Leung MD, Sharkey AJ (2014) Out of sight, out of mind? Evidence of perceptual factors in the multiple-category discount. Organ. Sci. 25:171–184.Link, Google Scholar
• Lin H-W, McNichols MF (1998) Underwriting relationships, analysts’ earning forecasts and investment recommendations. J. Accounting Econom. 25:101–127.Crossref, Google Scholar
• Markman A, Gentner D (1993) Structural alignment during similarity comparisons. Cognitive Psych. 25:431–468.Crossref, Google Scholar
• Martin E (2008) Merrill analysts to rate 20% of stocks “underperform” (Update3). Bloomberg.com (May 14) http://www.bloomberg.com/apps/news?pid=newsarchive&sid=adEBVoRumyq8&refer=us.Google Scholar
• McCaffrey D, Lockwood J, Mihaly K, Sass T (2012) A review of Stata routines for fixed effects estimation in normal linear models. Stata J. 12:406–432.Google Scholar
• Michaely R, Womack K (2005) Brokerage recommendations: Stylized characteristics, market responses and biases. Thaler R, ed. Advances in Behavioral Finance II (Sage, New York), 387–421.Google Scholar
• McNichols L, O’Brien P (1997) Self-selection and analyst coverage. J. Accounting Res. 35:167–1999.Crossref, Google Scholar
• Negro G, Leung MD (2013) “Actual” and perceptual effects of category spanning. Organ. Sci. 24(3):684–696.Link, Google Scholar
• Nosofsky RM (1991) Tests of an exemplar model for relating perceptual classification and recognition memory. J. Experiment. Psych. 17:3–27.Google Scholar
• Padgett J, Ansell C (1993) Robust action and the rise of the Medici: 1400–1434. Amer. J. Sociol. 98:1259–1319.Crossref, Google Scholar
• Payne JW (1976) Task complexity and contingent processing in decision making: An information search and protocol analysis. Organ. Behav. Human Performance 16:366–387.Crossref, Google Scholar
• Payne JW, Bettman JR, Johnson EJ (1993) The Adaptive Decision Maker (University of Cambridge Press, Cambridge, UK).Crossref, Google Scholar
• Pontikes E (2012) Two sides of the same coin: How ambiguous classification affects multiple audiences’ evaluations. Admin. Sci. Quart. 57:81–118.Crossref, Google Scholar
• Porac J, Wade T, Pollock T (1999) Industry categories and the politics of the comparable firm. Admin. Sci. Quart. 44:112–144.Crossref, Google Scholar
• Porac JF, Ventresca MJ, Mishina Y (2002) Interorganizational cognition and interpretation. Baum JAC, ed. The Blackwell Companion to Organizations (Blackwell, Oxford, UK), 579–598.Google Scholar
• Rao H, Greve H, Davis G (2001) Fool’s gold: Social proof in the initiation and abandonment of coverage by Wall Street analysts. Admin. Sci. Quart. 46:502–526.Crossref, Google Scholar
• Reingold D (2006) Confessions of a Wall Street Analyst (HarperCollins, New York).Google Scholar
• Rosch E (1978) Principles of categorization. Rosch E, Lloyd BB, eds. Cognition and Categorization (Halsted Press, New York), 189–206.Google Scholar
• Ruef M, Patterson K (2009) Credit and classification: The impact of industry boundaries in 19th century America. Admin. Sci. Quart. 54:486–520.Crossref, Google Scholar
• Schwarz N, Bless H (1992) Constructing reality and its alternatives: An inclusion/exclusion model of assimilation and contrast effects in social judgment. Martin LL, Tesser A, eds. The Construction of Social Judgment (Lawrence Erlbaum Associates, Hillsdale, NJ), 217–248.Google Scholar
• Sevdalis N, Harvey N (2006) Determinants of willingness to pay in separate and joint evaluations of options: Context matters. J. Econom. Psych. 27:377–385.Crossref, Google Scholar
• Shocker A, Ben-Akiva M, Boccara B, Nedungadi P (1991) Consideration set influences on consumer decision-making and choices: Issues, models, and suggestions. Marketing Lett. 3:181–197.Crossref, Google Scholar
• Siconolfi M (1995) Incredible “buys”: Many companies press analysts to steer clear of negative ratings. Wall Street Journal (July 19) http://online.wsj.com/article/SB10001424052748704207504575129834221494698.html.Google Scholar
• Smith EB (2011) Identities as lenses: How organizational identity affects audiences’ evaluations of organizational performance. Admin. Sci. Quart. 56:61–94.Crossref, Google Scholar
• Story L (2010) Prosecutors ask if 8 banks duped rating agencies. New York Times (May 12) http://www.nytimes.com/2010/05/13/business/13street.html.Google Scholar
• Tan D, Roberts PW (2010) Categorical coherence, classification volatility, and examiner added citations. Res. Policy 39:89–102.Crossref, Google Scholar
• Vergne JP (2012) Stigmatized categories and public disapproval of organizations: A mixed methods study of the global arms industry (1996–2007). Acad. Management J. 5:1027–1052.Crossref, Google Scholar
• Waguespack DM, Sorenson O (2011) The ratings game: Asymmetry in classification. Organ. Sci. 22:541–553.Link, Google Scholar
• Womack KL (1996) Do brokerage analysts’ recommendations have investment value? J. Finance 51:137–167.Crossref, Google Scholar
• Zerubavel E (1991) The Fine Line: Making Distinctions in Everyday Life (University of Chicago Press, Chicago).Google Scholar
• Zuckerman EW (1999) The categorical imperative: Securities analysts and the illegitimacy discount. Amer. J. Sociol. 104:1398–1438.Crossref, Google Scholar
• Zuckerman EW (2000) Focusing the corporate product: Securities analysts and de-diversification. Admin. Sci. Quart. 45:591–619.Crossref, Google Scholar
• Zuckerman EW (2004) Structural incoherence and stock market activity. Amer. Sociol. Rev. 69:405–432.Crossref, Google Scholar
• Zuckerman E, Kim T, Ukanwa K, von Rittman J (2003) Robust identities or nonentities? Typecasting in the feature-film labor market. Amer. J. Sociol. 108:1018–1073.Crossref, Google Scholar
• Zuckerman EW, Rao H (2004) Shrewd, crude or simply deluded? Comovement and the Internet stock phenomenon. Indust. Corporate Change 13:171–212.Crossref, Google Scholar