“…As a group, institutional investors rely on analysts' earnings' forecasts (Walther, 1997), trade based on information contained in target prices (Lin et al, 2016) and generate excess returns when trading on analysts' stock recommendations (Chen and Cheng, 2006;Green, 2006;Irvine et al, 2007). However, when considering their size, large sophisticated institutional investors appear to be more aware of the inherent bias and conflicts in analysts' recommendations, compared to small investors who naively follow the analysts' advice (Malmendier and Shanthikumar, 2007;Mikhail et al, 2007;Malmendier and Shanthikumar, 2014).…”