File under things that don’t need research: "CEO language misleads analysts’ ratings, study confirms"

Duh!

Business analysts, who are paid to dryly evaluate and forecast the financial performance of the companies they cover, turn out to be vulnerable to what one research group has dubbed “charismatic” language in the CEOs’ vision statements. Certain words and imagery seems to push analysts’ emotional buttons. These analysts then skew their forecasts,

Just remember, these analysts are the smartest guys and talent like this has to be compensated, otherwise they may leave to more welcoming foreign land, like Dubai, where the party never stops.

P.S. I am sure “charisma” is just code for preferential treatment (or shares).

Advertisement

Leave a Comment

Filed under Corruption, Crooked bankers, Market, Stupid investment managers

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Connecting to %s