Abstract
Purpose The purpose of this paper is to examine the factors leading to turnover among sellside financial analysts and the consequences of turnover. Designmethodologyapproach The paper identifies two types of turnover, voluntary and involuntary, and defines voluntary involuntary as when analysts leave their employment at one brokerage firm and find do not find employment at another brokerage firm. Logistic models are estimated relating the probability of turnover to factors that explain turnover for both voluntary and involuntary turnover. Findings The paper finds that job performance is positively negatively related to voluntary involuntary turnover. This finding is consistent with Jackofsky's theory predicting Ushaped relationship between performance and turnover. For voluntary turnover, analysts' performance and job conditions at the new brokerage firm are examined and related to the factors leading to turnover. It was found that turnover analysts move to smaller brokerage firms and become more accurate. They have lighter workload and enjoy more prestige at the new brokerage firm as they follow larger firms and fewer firms and industries. Originalityvalue This is the first study to apply Jackofsky's theory to the financial analysts' profession. Also, it is the first study to document the consequences to voluntary analyst turnover.