Their paper, ‘Analyst Recommendations and Mispricing across the Globe,’ was awarded runner-up in the CFA's 2025 Germany Investment Research Award at the end of December. “I am very pleased that our hard work has been recognized and appreciated,” says Sebastian Müller. The analysis included data sets from 45 countries, 3.8 million monthly company observations and 222 return anomalies from 1994 to 2019.
The results show that analysts who want to create real added value should take all available information into account, especially signals from market anomalies. For the researcher, another surprising finding appeared: “Our results suggest that analysts’ recommendations are more valuable to investors than previously thought.” This is particularly true for less developed and less individualistic markets.
For Sebastian Müller, this is a reason to broaden his horizons: “Our study underscores the importance of considering international markets when evaluating the performance of financial analysts and their influence on market outcomes.”
Congratulations to Professor Sebastian Müller and Professor Vitor Azevedo. We are proud of this outstanding research achievement at TUM Campus Heilbronn.