Singapore Management University (SMU) unveiled research on 15 May, 2023, revealing the significant role of social skills on equity analysts’ performance and career advancements.
The study, titled “The Effect of Social Skills on Analyst Performance”, was led by Assistant Professor of Accounting An-Ping Lin.
Analysing 38,875 analyst-company-year observations from 2014 to 2015, the team found that analysts with superior social skills demonstrated higher earnings forecast accuracy and issued more profitable stock recommendations.
These sociable analysts were also more likely to be voted as star analysts by institutional investors, indicating enhanced communication and responsiveness to clients’ needs.
The study further found these analysts enjoyed better job security during employer acquisitions, underlining the value of social skills in the labour market.
The findings also underscored the importance of social skills training in the workplace, especially in the context of the AI (Artificial Intelligence) era.
