主 题：Career Concerns of Banking Analysts
Shan Wu is International Research Fellow at CEIBS. She holds a Ph.D. degree in Accounting and Finance from University of Exeter, a top 10 Russel Group university in the UK. Her main research area is behaviour finance. She is currently doing research on the behaviour of sell-side analysts, contextual analysis of corporate disclosures and investor sentiment. She presented her paper in various international conferences and has co-authorship with professors from UK and US. She held Msc. degree in Imperial College, London with strong programming skills and an engineering background. She has published her papers at some international journals such as “Journal of Accounting and Economics”, “Harvard Business Review”.
We study how career concerns influence banking analysts’ forecasts. Banking analysts’ first (last) earnings forecast of the year is relatively more optimistic (pessimistic) for a bank that could be their future employer. This pattern is not observed when the same analysts forecast earnings of banks unlikely to be their future employer. We use the Global Settlement as an exogenous shock on career concerns and show that this forecast pattern is more pronounced after the Settlement. Moreover, we find evidence that analysts benefit from this behavior as analysts that are more biased in their forecasts of potential future employers are more likely to move to a higher reputation bank.