Marks of Distinction: Framing and Audience Appreciation in the Context of Investment Advice

In examining how framing influences an audience’s appreciation of products, practices, and people, including the framer, we take the perspective of the audience that evaluates the framing. We examine the effects of framing on evaluations when audiences are exposed to a multiplicity of frames, both by the same actor as the result of recurrent communications over time and by multiple actors who vie for attention. Using 36,012 research reports by securities analysts, covering the biotechnology and pharmaceutical industry between 1989 and 2012, we tested the relationships between analysts’ framing repertoires and professional investors’ evaluations of analysts as measured in the publication of Institutional Investor’s short list of the best analysts of the year. We found that investors appreciate analysts with framing repertoires that resonate with their needs, that are internally coherent over time, and that offer a moderate amount of novelty in comparison to others’ framings. We also found that framing is particularly important for analysts without existing high status, that is, who have never before been recognized as stars or who cannot benefit from association with a prestigious employer.