Liu, Yi; Mantecon, Tomas; Szewczyk, Samuel H. - In: International Journal of Banking, Accounting and Finance 3 (2011) 2/3, pp. 118-132
Using all available 385,342 initiations, upgrades, and downgrades of equity analysts' recommendations between 1980 and … drift following downgrades. We found that initiations with neutral rating were also followed by significant negative … abnormal returns, suggesting that investors adjust for the positive rating bias in initiations. We also found significant drift …