Stock Prices and the Dissemination of Analysts' Recommendations Export

@article{citeulike:3326904, abstract = {Alternative explanations for the significant stock price reaction to analysts' recommendations as reported in the "Heard on the Street" (HS) column of the Wall Street Journal are investigated using data for the period 1978-1979. Consistent with Lloyd Davies and Canes (1978), it is found that buy (sell) recommendations published in the column are associated with positive (negative) significant average abnormal stock price performance on the day of publication in HS and the 2 preceding trading days. The observed market reaction persists after eliminating firms with confounding releases and firms for which analysts' reports are issued immediately prior to publication. The evidence indicates that HS is not usually a secondary dissemination. First, stock prices adjust prior to publication when recommendations are reported on a single firm. Second, analysts have incentives to release information to HS before disseminating it to their clients. Overall, the evidence suggests that HS gathers information, forms a consensus, and provides it to investors.}, author = {Beneish and Messod, D.}, citeulike-article-id = {3326904}, journal = {The Journal of Business}, keywords = {analysis, analysts, comparative, economic, effects, management, models, portfolio, prices, recommendations, regression, research, securities, stock, studies}, month = {July}, number = {3}, pages = {393--417}, posted-at = {2008-09-24 02:41:40}, priority = {2}, title = {Stock Prices and the Dissemination of Analysts' Recommendations}, volume = {64}, year = {1991} }

TY - JOUR ID - citeulike:3326904 L3 - citeulike-article-id:3326904 N2 - Alternative explanations for the significant stock price reaction to analysts' recommendations as reported in the "Heard on the Street" (HS) column of the Wall Street Journal are investigated using data for the period 1978-1979. Consistent with Lloyd Davies and Canes (1978), it is found that buy (sell) recommendations published in the column are associated with positive (negative) significant average abnormal stock price performance on the day of publication in HS and the 2 preceding trading days. The observed market reaction persists after eliminating firms with confounding releases and firms for which analysts' reports are issued immediately prior to publication. The evidence indicates that HS is not usually a secondary dissemination. First, stock prices adjust prior to publication when recommendations are reported on a single firm. Second, analysts have incentives to release information to HS before disseminating it to their clients. Overall, the evidence suggests that HS gathers information, forms a consensus, and provides it to investors. IS - 3 JF - The Journal of Business EP - 417 TI - Stock Prices and the Dissemination of Analysts' Recommendations VL - 64 SP - 393 KW - analysis KW - analysts KW - comparative KW - economic KW - effects KW - management KW - models KW - portfolio KW - prices KW - recommendations KW - regression KW - research KW - securities KW - stock KW - studies AU - Beneish AU - Messod, D PY - 1991/07// ER -