This study examines whether analysts’ informativeness and activities change following regulatory reforms that strengthen market surveillance. We find that star (non-star) analysts provide firm-specific (market-wide) information, particularly for firms with characteristics favored by fund...

This study examines whether sentiment indices predict individual firms’ stock returns and evaluates the performances of sentiment-based trading strategies. Both the sentiment indices constructed using the principal component analysis (PCA) and overnight stock returns positively predict stock...

This study examines the responses of investor sentiment and stock market returns to announcements of changes in analyst recommendation as well as the effect of these announcements on the relationship between sentiment and stock returns. Investor sentiment is more sensitive to upgrade...