Comparing the stock recommendation performance of investment banks and independent research firms

• 成果类型: Article
• 署名作者: Barber, Brad M.; Lehavy, Reuven; Trueman, Brett
• 署名单位: University of California System; University of California Los Angeles; University of California System; University of California Davis; University of Michigan System; University of Michigan
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2005.09.004
• 发表日期: 2007
• 页码: 490-517
• 关键词: analyst; recommendation; investment bank; independent research; global research analyst settlement

摘要

From January 1996 through June 2003, the average daily abnormal return to independent research firm buy recommendations exceeds that of investment bank buy recommendations by 3.1 basis points (almost 8 percentage points annualized). Investment bank buy recommendation underperformance is more pronounced following the NASDAQ market peak (March 10, 2000) and strikingly so for buy recommendations on firms that recently conducted equity offerings. In contrast, investment bank hold and sell recommendations outperform those of independent research firms by 1.8 basis points daily (4 1/2 percentage points annualized). These results suggest reluctance by investment banks to downgrade stocks whose prospects dimmed during the bear market of the early 2000s, as claimed in the SEC's Global Research Analyst Settlement. (C) 2006 Elsevier B.V. All rights reserved.