Showing 1 - 10 of 13,396
Using a novel database, we show that the stock-price impact of analyst trade ideas is at least as large as the impact of stock recommendation, target price, and earnings forecast changes, and that investors following trade ideas can earn significant abnormal returns. Trade ideas triggered by...
Persistent link: https://www.econbiz.de/10012120228
Using data from the Stockholm Stock Exchange we study the value added by (as distinct from the abnormal returns to) analysts' recommendations. Recommending brokers' clients trade profitably around positive recommendations at the expense of other brokers' clients. Significant profits come from...
Persistent link: https://www.econbiz.de/10012903672
In this study, we examine whether sell-side security analysts gain access to value relevant information through political connections. We measure analysts' political connections based on political contributions at the brokerage house level. We argue that if brokerages are able to obtain private...
Persistent link: https://www.econbiz.de/10012973465
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...
Persistent link: https://www.econbiz.de/10012894377
Using hand-collected information, we find that analysts who own stock in a company they follow make more informative recommendations and exert more effort in covering the company. However, we also find that analysts with stock ownership issue more optimistic target price forecasts. These...
Persistent link: https://www.econbiz.de/10012913085
Using the setting of extreme mutual fund flow-driven trading pressure, this paper examines sell-side analysts' role in stabilizing capital markets. We find that a select group of analysts persistently issue price-correcting recommendation changes for stocks experiencing mutual fund flow-driven...
Persistent link: https://www.econbiz.de/10012916560
We use a proprietary dataset to test the implications of several asymmetric information models on how short-lived private information affects trading strategies and liquidity provision. Our identification rests on information acquisition before analyst recommendations are publically announced....
Persistent link: https://www.econbiz.de/10012973309
Using a large sample of target price forecasts for 6,415 U.S. firms from 1999 to 2011, we find that target price changes predict institutional trading, even after we control for changes in both stock recommendations and earnings forecasts. The impact of target price changes is economically...
Persistent link: https://www.econbiz.de/10013090287
Using a model without conflicts of interest and with identical information available to equity analysts, we show that bias and herding in their stock recommendations occur due to incentives provided by relative performance evaluation and top awards. Furthermore, these incentives also lead to...
Persistent link: https://www.econbiz.de/10013134116
This study investigates the association between institutional investors’ ownership and sell-side analysts’ stock recommendations in the context of the heterogeneous nature of institutional investors. Based on a sample of 281 Malaysian public listed companies over the period 2008-2013 (732...
Persistent link: https://www.econbiz.de/10012659757