When are analyst recommendation changes influential?

• Main Authors: LOH, Roger, STULZ, Rene M.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2011
• Subjects: Security Analysts; Stock Recommendations; Corporate Finance; Portfolio and Security Analysis
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/3127; https://ink.library.smu.edu.sg/context/lkcsb_research/article/4126/viewcontent/Ink_version_RFS2011_Loh_and_Stulz.pdf; https://ink.library.smu.edu.sg/context/lkcsb_research/article/4126/filename/0/type/additional/viewcontent/Loh_and_Stulz_2010_Internet_Appendix.pdf
• Institution: Singapore Management University

The existing literature measures the contribution of analyst recommendation changes using average stock-price reactions. With such an approach, recommendation changes can have a significant impact even if no recommendation has a visible stock-price impact. Instead, we call a recommendation change in...