Financial analysts' stock recommendation revisions and stock price changes

Chang, Yung-Ho and Chan, Chia-Chung

Applied Financial Economics, 2008, vol. 18, issue 4, pages 309-325

Abstract: The market reaction to financial analysts' stock recommendation revisions is examined in terms of magnitude and direction. It is found that market-adjusted stock returns are associated with the direction of stock recommendation revisions. For the stocks that receive downward stock recommendation revisions, the market-adjusted stock returns can also be explained by the magnitude of stock recommendation revisions, brokerage houses' publicity, firm size, firm age, New York Stock Exchange listing, and stock price momentum. The empirical evidence suggests that financial analysts' downward stock recommendation revisions provide superior information to investors than do upward stock recommendation revisions.

Downloads: (external link)
http://www.informawo ... 40C6AD35DC6213A474B5 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Ordering information: This journal article can be ordered from
http://www.tandf.co.uk/journals/subscription.html

Access Statistics for this article

Applied Financial Economics is edited by Mark P. Taylor

More articles in Applied Financial Economics from Taylor and Francis Journals
Series data maintained by Christopher F. Baum ().