A single link to the first track to allow the export script to build the search page
  • 2016 Fall: Volume 15, Issue 2
  • Stock Price Impact of Analysts’ Opinion and Their Reputation: Evidence from Online Dissemination of Analysts’ Opinion

    • Joon Young Song

    Title:

    Stock Price Impact of Analysts’ Opinion and Their Reputation: Evidence from Online Dissemination of Analysts’ Opinion

    Author(s):

    Joon Young Song

    Publication Date:

    2016

    Journal Title:

    The Journal of Finance Issues

    Volume Number:

    15

    Issue Number:

    2

    Abstract:

    This study presents that stock price reaction to the recommendation updates reallymatters with the recommendation issuing brokerage firms’ reputation. Investors arebelieved to interpret the recommendation updates as more reliable information when theupdates are made by more reputable brokerage firms. Firm size also influences the stockprice reaction to the recommendation updates. The smaller cap stocks appear to be moresensitive to the recommendation updates than the larger cap stocks do. The impact ofrecommendation updates on subsequent stock price movements seems to depend on howthe update information is disseminated. The impact appears to be more pronounced whenthe update information is disseminated via more easily accessible non-fee base onlinesources such as Yahoo!Finance. Finally, trading on the recommendation updates releasedvia a publicly available financial website could make about 5 percent excess return over ashort –term period of five weeks.

    First Page:

    29

    Last Page:

    50

    Total Pages:

    21