allaboutadvocacy.com

Univer$ity Advocates

Being an advocate for your university can help drive share price? How does that work? Harvard Business School and the University of Chicago Graduate School of Business found that university ties can make a difference among equity analysts. Essentially, information flows more tightly in security markets among those who attended the same schools. Interestingly, ivy league school advocates fare no better than non-ivy league school advocates. Essentially the research by professor Lauren Cohen found that
equity analysts outperform on stock recommendations when they went to the same university as the company’s management. The information flow is clearly more liquid and far-reaching among university networks than previously thought. Apparently the old school ties can help equity analysts make the right picks and recommendations. Public company managers might want to handpick those sell-side analysts who share common university ties and turn them into true blue advocates. A thought as the markets close for memorial day in the U.S.

Happy holiday.