We test whether a bias exists in analyst recommendations for firms that file for bankruptcy during 1995–2001. We fail to find overoptimism in analyst recommendations, including those of affiliated analysts. Our multivariate analysis of the market reaction to changes in analyst recommendations...

We test whether a bias exists in analyst recommendations for firms that file for bankruptcy during 1995-2001. We fail to find over-optimism in analyst recommendations, including those of affiliated analysts. Our multivariate analysis of the market reaction to changes in analyst recommendations...

In this study we test for the presence of over-optimism in analyst recommendations for a sample of bankrupt firms over the 1995-2001 period. Our findings indicate a pervasive over-optimism in analysts' recommendations. This recommendation bias exists even for firms that are unable to reorganize...