Abstract
Using the surnames of financial analysts in Korea, this paper examines how investors react to forecasts of analysts with familyship. Since Korea has a strong family-centered culture of sharing the surname, it provides a suitable setting for examining whether investors incorporate analysts’ personal characteristics into their decision-making. This paper finds that stock recommendations by analysts with familyship elicit stronger market reactions. Additionally, the effect is only observed in the cases of upgrade, hold, and buy recommendations. Finally, the effect is observed only when the stock market was not in recession.
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