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Stocks

How attractive analysts make better stock calls

Chinese executives appear to show favor in providing information

| China
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Chinese billionaire actress Zhao Wei is known for investing in real estate, a French winery, and more recently an animation studio.   © Reuters

It is commonly thought that physically attractive people always get the best deals in life -- better job opportunities, higher earnings, more chances for career success, not to mention connections in high places and an amazing social life. Like it or not, research in sociology and psychology has shown a correlation between an attractive appearance and better treatment both in the workplace and in social settings.

The financial markets of China, perhaps surprisingly, operate under a similar dynamic, with the attractiveness of financial analysts positively associated with the accuracy of their earnings forecasts and the value of their stock recommendations.

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