On the information role of stock recommendation revisions

• 成果类型: Review
• 署名作者: Altinkilic, Oya; Hansen, Robert S.
• 署名单位: Tulane University; Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2009.04.005
• 发表日期: 2009
• 关键词: EARNINGS-ANNOUNCEMENT DRIFT; asset price dynamics; cross-section; Analyst recommendations; corporate-investment; FORECAST REVISIONS; MARKET-EFFICIENCY; career concerns; EQUITY ISSUES; returns

摘要

We examine the information transmission role of stock recommendation revisions by sell-side security analysts. Revisions are associated with economically insignificant mean price reactions and often piggyback on recent news, events, long-term momentum, and short-run contrarian return predictors, typically downgrading after bad news and upgrading after good news. However, the revisions are usually information-free for investors. The findings go against the long-standing view that recommendations are an important means by which analysts assimilate information into stock prices. They disagree with the view of policymakers that analysts' stock picks materially impact stock prices. (C) 2009 Elsevier B.V. All rights reserved.