The importance of sell-side analysts’ specialised education in technical sectors : Evidence from the chemical manufacturing industry

Wang, Yang (2025) The importance of sell-side analysts’ specialised education in technical sectors : Evidence from the chemical manufacturing industry. Accounting and Business Research. ISSN 0001-4788

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Abstract

This paper studies how sell-side analysts’ educational background affects their forecasting behaviour and career outcomes. Focusing on the chemical manufacturing industry and analysts’ university education, I find that analysts with a matching relevant technological degree provide more accurate earnings and sales forecasts than analysts without one. The matching degree effect on forecast accuracy is more pronounced among firms with high R&D intensity and among analysts in their early career stages. In addition, I find that the market reacts more strongly to forecasts revised and recommendations issued by analysts with a matching degree. Finally, I find that analysts with a matching degree have more favourable career outcomes than analysts who cover the same industry but lack a matching degree.