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The Impact of Analyst, CEO and Firm Reputations on Investors in the UK and Japanese Stock Markets

Lookup NU author(s): Professor Simon Hussain, Dr Chen SuORCiD



This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND).


We examine the importance of multiple agents’ reputations on the market’s reaction to analysts’ stock recommendation revisions (analyst revisions), individually and interactively, in the UK and Japanese stock markets. We find some notable variations in reputation effects between the two markets. In the UK, analyst reputation amplifies the market’s reaction to analyst revisions, while in Japan analyst reputation has no significant impact. Firm reputation diminishes (amplifies) the market’s reaction to analyst revisions in the UK (Japan). Only CEO reputation generates similar effects in the UK and Japan, dampening the market’s reaction to analyst revisions. We also find that reputations interact in different ways in the two markets. Specifically, firm reputation and CEO reputation tend to moderate the positive effect of analyst reputation in the UK; however, in Japan, CEO reputation tends to moderate the positive effect of firm reputation, though there is no significant interaction effect between analyst reputation and CEO/firm reputation. Our findings are explained using insights both from formal economic models and from different cultural and institutional characteristics.

Publication metadata

Author(s): Hussain S, Su C

Publication type: Article

Publication status: Published

Journal: British Journal of Management

Year: 2024

Volume: 35

Issue: 1

Pages: 259-280

Print publication date: 01/01/2024

Online publication date: 29/01/2023

Acceptance date: 03/01/2023

Date deposited: 03/01/2023

ISSN (print): 1045-3172

ISSN (electronic): 1467-8551

Publisher: Wiley


DOI: 10.1111/1467-8551.12712


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Funder referenceFunder name
Research and Impact Fund 2021–2022, Newcastle University Business School