Abstract

This thesis explores the performance of sell-side equity research analysts in the energy sector, specifically how the educational background of these analysts affects the accuracy of their forecasts of earnings per share. I further examine how macro-economic shocks impact forecasting accuracy by conducting difference-in-differences regressions. Finally, I also briefly examine herding, documenting how educational background affects this behaviour. This thesis expands on the literature of sell-side analyst performance, while addressing a topic, education, which few academic papers cover. I also offer insights on analyst behaviour and performance during significant macroeconomic shocks to provide a more complete narrative of the work of sell-side equity research analysts. The thesis limits its scope on equity analysts to those covering the energy sector between 2009 and 2017.