The Effect of Organizational Climate on Sell‐side Analyst Turnover and Performance.
This paper investigates whether and how organizational climate (OC) in brokerage firms affects analyst turnover and performance. We find that firms with a lower‐rated OC have a higher likelihood of analyst turnover. Also, when analysts leave and switch brokerage firms, they are more likely to move t...
| Publicado en: | Abacus Vol. 60; no. 1; pp. 49 - 91 |
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| Autores principales: | , , |
| Formato: | Artículo |
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Wiley-Blackwell
Mar2024
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| Materias: | |
| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=175801058&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 175801058 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00013072 AUB jtl: Abacus issn: 00013072 maglogo: Y pubinfo: dt: Mar2024 vid: 60 iid: 1 pid: 480 pub: Wiley-Blackwell artinfo: ui: 175801058 10.1111/abac.12306 ppf: 49 ppct: 42 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 521KB tig: atl: The Effect of Organizational Climate on Sell‐side Analyst Turnover and Performance. aug: au: Chua, Wai Fong Kuang, Yu Flora Wu, Yi affil: University of Sydney Business School, The University of Sydney, Sydney, Australia Department of Accounting, The University of Melbourne, Melbourne, Australia School of Management, Zhejiang University, Zhejiang, China su: Institutional environment Securities analysts Earnings forecasting Stockbrokers Labor turnover sug: subj: Institutional environment Securities analysts Earnings forecasting Stockbrokers Labor turnover keyword: Analyst performance Analyst turnover Brokerage firms Organizational climate ab: This paper investigates whether and how organizational climate (OC) in brokerage firms affects analyst turnover and performance. We find that firms with a lower‐rated OC have a higher likelihood of analyst turnover. Also, when analysts leave and switch brokerage firms, they are more likely to move to a firm with a higher‐rated OC and will deliver more accurate forecasts after switching firms. However, the performance improvements in better‐rated OC firms are significant only for the initial years of the analysts' employment in the new firms. We also show that OC‐related analyst turnover negatively affects the performance of incumbent analysts, especially for those non‐All‐Star incumbent analysts, while these adverse performance effects are also transitory and last for two years only. Thus, our findings indicate that OC only has a short‐lived effect on the behaviour of both leaving and remaining analysts, which challenges the long‐held assumption that investments in a positive OC will always be associated with lower employee turnover and higher individual performance. We explain our results as arising from the high levels of labour mobility within the brokerage industry and the transparency of analyst forecasts as a public performance measure. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y custom: Copyright of Abacus is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. item: Abacus holder: Wiley-Blackwell dt: @attributes: year: 2024 holdings: @attributes: islocal: N |
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