Using a large database of analysts' target prices and recommendations issued over the period 1999-2011, this paper documents the presence of inconsistencies between recommendation and implied return in the sell-side analysts' target prices, and analyzes its impact on market prices. In...

This paper investigates the effects of analyst recommendations issued after a merger announcement on deal completion. We find the probability of completion increases (decreases) with the favorability of acquirer (target) recommendations. Results from instrumental variables tests support...

Recent literature documents that analyst recommendations tend to coincide with important corporate events, but offers mixed evidence on whether such recommendations have added value. In this paper, we use jump in stock price as a proxy for generic corporate “information event” and examine...