New Fortune Rankings and Analyst Status

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Questions and Answers

What is the primary purpose of the New Fortune rankings?

To evaluate the institutional investors' ratings

To assess the capital management institutions' investments

To measure the performance of portfolio managers

To measure the status of analysts (correct)

Who are asked to rate analysts in the New Fortune rankings?

Portfolio managers, capital management institutions, and other public departments (correct)

Research institutions and investors

Staying analysts

Departing analysts

What is a key factor in the observed peer effect of high-status coworkers' performance?

Industry overlap between staying and departing analysts

The quality of relationships among employees

The level of competition for resources and rewards (correct)

The length of time since the knowledge spillover

What is the duration of the observation window for each of the before- and after-departure periods in the study?

1 year Signup and view all the answers

According to the study, what is the relationship between departing and staying analysts that is being examined?

The impact of high-status departure on incumbent analysts Signup and view all the answers

Who benefits most from the departure of high-status employees?

High-status incumbents Signup and view all the answers

What is the likely outcome when high-status analysts depart from a low-status firm?

A performance increase among staying analysts Signup and view all the answers

How often are the New Fortune rankings released?

Annually Signup and view all the answers

What is the relationship between employee status and performance in the context of the study?

Employee status is weakly coupled with their quality and performance Signup and view all the answers

What is the basis of the New Fortune rankings?

A survey sent to portfolio managers, capital management institutions, and other public departments Signup and view all the answers

What is the effect of knowledge spillover over time in the context of the study?

It decays over time Signup and view all the answers

In which contexts are the study's findings more likely to be observed?

In contexts where employees are in highly contested relationships competing for resources and opportunities Signup and view all the answers

What is a key factor that influences the advantages attributed to high-status employees?

Turnover Signup and view all the answers

What do managers need to do in the wake of a high-status employee departure?

Adeptly navigate the departure instance with a strategic approach Signup and view all the answers

What is a novel perspective on the impact of employee turnover demonstrated in the study?

The impact of turnover on resource allocation Signup and view all the answers

What is the consequence of high-status employee departures on business operations?

They sometimes impede business operations Signup and view all the answers

What should managers avoid doing according to the study's findings?

Firing high-status employees without a reason Signup and view all the answers

What is the significance of considering employee status when exploring the peer influence of turnover?

It is highly significant Signup and view all the answers

What is the challenge in evaluating individual performance in a team with highly interconnected tasks?

It is impossible to separate individual performance from peer influences. Signup and view all the answers

According to Magee and Galinsky (2008), what advantage do high-status actors have in organizations?

They can secure more power and resources, regardless of their performance. Signup and view all the answers

How is recommendation consensus for a stock calculated?

By calculating the average of all recommendations for the stock in a year. Signup and view all the answers

According to Paik et al. (2023), what is the increase in performance associated with becoming a high-status analyst?

16.7% of its standard deviation. Signup and view all the answers

What is the percentage change in the standard deviation of financial analysts' performance associated with a one-point decrease from the inflection point of work-life balance?

4.9% increase. Signup and view all the answers

What is the significance of the 7.9% change in performance associated with losing high-status colleagues?

It is a significant effect, comparable to becoming a high-status analyst. Signup and view all the answers

What is the license that governs OA articles on Wiley Online Library?

Applicable Creative Commons License 310 Signup and view all the answers

What is the topic of the 2015 article by Call, Nyberg, and Thatcher?

Star employee research Signup and view all the answers

Which of the following authors is associated with the 1997 article on mutual fund performance?

Carhart, M.M. Signup and view all the answers

What is the topic of the 2010 article by Castellucci and Ertug?

Advantages of higher-status partners in exchange relationships Signup and view all the answers

What is the topic of the 2018 article by Chen and Garg?

Benefits of a star employee's temporary absence for organizational performance Signup and view all the answers

Which of the following authors is associated with the 2003 and 2005 articles on financial analyst characteristics and herding behavior?

Clement, M.B. Signup and view all the answers

Study Notes

The New Fortune and Analyst Rankings

The New Fortune releases an annual ranking of best analysts, similar to the Institutional Investor rankings in the United States.
The rankings are based on a survey of portfolio managers, capital management institutions, and other public departments.

High-Status Employee Departure and Performance

The departure of high-status analysts leads to a performance increase of their staying colleagues.
The effect is more pronounced when they work in a low-status firm and when staying analysts have more industry overlap with departing analysts.

Contingency Factors of High-Status Departure

The effect of high-status departure is contingent on the relationship between departing and staying analysts.
The effect is more likely to be observed in contexts where employees are in more contested relationships competing for resources and opportunities.

Importance of Considering Employee Status

It is crucial to consider employee status when exploring the peer influence of turnover.
Managers should be aware of the advantages attributed to high-status employees and the performance shifts among their colleagues.

Managing Employee Departure

Managers should strategically respond to employee departure instances, particularly high-status departures, to maintain good performance levels.
Cultivating employees with similar work can help maintain performance levels.

Code and Recommendation Consensus

Recommendations of strong sell, sell, hold, buy, and strong buy are coded as -2, -1, 0, 1, and 2 respectively.
Recommendation consensus for a stock is calculated as the average of all recommendations for the stock in a year.

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Description

This quiz assesses your understanding of the New Fortune rankings, which measure the status of analysts. It covers the annual ranking of Best Analysts, the relationship between departing and staying analysts, and the impact of high-status departure on incumbent analysts. Test your knowledge of the New Fortune's role in evaluating analyst performance.