Brokers’ Stock Ratings Distributions and the Returns from their Stock Recommendations: Evidence Post-NASD Rule2 711

• Main Authors: CHEN, Chih-Ying, CHEN, Kun-Chih
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2013
• Subjects: Broker recommendations; analyst recommendations; stocks; Accounting; Corporate Finance; Portfolio and Security Analysis
• Online Access: https://ink.library.smu.edu.sg/soa_research/1091
• Institution: Singapore Management University

NASD 2711 requires brokers to disclose their overall ratings distribution and the percentage of their investment banking customers within each rating. Based on research reports of 50 large brokers between 2003 and 2011, we find an upward trend in the overall buy percentage (BUY percentage) and a dec...