We find that the adverse impact of bad news on analysts’ valuations is 57% larger when the CEO is Non-White, resulting in more pessimistic valuations for Non-White CEOs relative to their White counterparts. Non-White CEO firms are more likely to surpass analysts’ valuation targets in the subsequent 12 months, suggesting that this racial gap lacks economic justification. To provide further evidence of a racial bias: (1) we triangulate our empirical findings with corroborating evidence from a controlled experiment and (2) we provide evidence that analysts’ valuation disparities towards Non-White CEO firms become larger when race relations are worse. Increases in CEO familiarity attenuate these disparities, suggesting the bias we document appears to be subconscious. Our findings suggest that resources allocated towards educating a firm’s stakeholders about the potential impact of implicit racial biases and increasing self-awareness may be impactful in promoting equality within capital markets.

中文翻译：

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卖方分析师是否对少数族裔主导的公司的坏消息反应过于悲观？目标价估值的证据


我们发现，当首席执行官是非白人时，坏消息对分析师估值的不利影响要大 57%，导致非白人首席执行官的估值相对于白人同行更为悲观。非白人首席执行官的公司更有可能在接下来的 12 个月内超越分析师的估值目标，这表明这种种族差距缺乏经济理由。为了提供种族偏见的进一步证据：（1）我们将我们的实证研究结果与对照实验中确凿的证据进行三角测量，（2）我们提供的证据表明，当种族关系恶化时，分析师对非白人首席执行官公司的估值差异会变得更大。 CEO 熟悉度的增加会减弱这些差异，这表明我们记录的偏见似乎是潜意识的。我们的研究结果表明，分配资源来教育公司的利益相关者了解隐性种族偏见的潜在影响和提高自我意识可能会对促进资本市场内的平等产生影响。