Economics, Econometrics and Finance
4 years ago

Stock recommendations revisions have little impact on stock prices, study finds.

On the Information Role of Stock Recommendation Revisions
Oya Altınkılıç, Robert S. Hansen

Paper Summary

Stock recommendation revisions by analysts don't really affect stock prices much. They mostly just follow recent news and trends, like upgrading after good news and downgrading after bad news. This suggests that analysts' recommendations don't have a big impact on stock prices, contrary to what many people think.

Related papers

Business, Management and Accounting
4 years ago

Analysts with more experience and resources make more accurate forecasts.

Earnings Management
Time Series Forecasting
Asset Pricing
Economics, Econometrics and Finance
8 years ago

Stock recommendations revisions offer little value to investors, study finds.

Asset Pricing
Earnings Management
Corporate Governance
Economics, Econometrics and Finance
8 years ago

Analysts' stock recommendations shape market reactions beyond corporate news.

Asset Pricing
Earnings Management
Corporate Governance