Measuring the added value of stock recommendations
Using data from the Stockholm Stock Exchange we study the value added by (as distinct from the abnormal returns to) analysts’ recommendations. Recommending brokers’ clients trade profitably around positive recommendations at the expense of the clients of brokers without analyst coverage. Significant...
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| Format: | Conference item |
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European Finance Association
2016
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| _version_ | 1797080345427836928 |
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| author | Jones, H Anderson, A Martinez, J |
| author_facet | Jones, H Anderson, A Martinez, J |
| author_sort | Jones, H |
| collection | OXFORD |
| description | Using data from the Stockholm Stock Exchange we study the value added by (as distinct from the abnormal returns to) analysts’ recommendations. Recommending brokers’ clients trade profitably around positive recommendations at the expense of the clients of brokers without analyst coverage. Significant profits come from transactions before recommendation dates. Value added is greatest for upgrades to large caps. Value added from downgrades and from recommendations for small caps is largely insignificant despite high abnormal returns to these categories. Brokers making profitable recommendations for their clients are rewarded by abnormal trading volumes, and capture much of the value added themselves. |
| first_indexed | 2024-03-07T00:58:40Z |
| format | Conference item |
| id | oxford-uuid:88f65ca5-aa28-407e-adec-e52f325fd831 |
| institution | University of Oxford |
| last_indexed | 2024-03-07T00:58:40Z |
| publishDate | 2016 |
| publisher | European Finance Association |
| record_format | dspace |
| spelling | oxford-uuid:88f65ca5-aa28-407e-adec-e52f325fd8312022-03-26T22:21:15ZMeasuring the added value of stock recommendationsConference itemhttp://purl.org/coar/resource_type/c_5794uuid:88f65ca5-aa28-407e-adec-e52f325fd831Symplectic Elements at OxfordEuropean Finance Association2016Jones, HAnderson, AMartinez, JUsing data from the Stockholm Stock Exchange we study the value added by (as distinct from the abnormal returns to) analysts’ recommendations. Recommending brokers’ clients trade profitably around positive recommendations at the expense of the clients of brokers without analyst coverage. Significant profits come from transactions before recommendation dates. Value added is greatest for upgrades to large caps. Value added from downgrades and from recommendations for small caps is largely insignificant despite high abnormal returns to these categories. Brokers making profitable recommendations for their clients are rewarded by abnormal trading volumes, and capture much of the value added themselves. |
| spellingShingle | Jones, H Anderson, A Martinez, J Measuring the added value of stock recommendations |
| title | Measuring the added value of stock recommendations |
| title_full | Measuring the added value of stock recommendations |
| title_fullStr | Measuring the added value of stock recommendations |
| title_full_unstemmed | Measuring the added value of stock recommendations |
| title_short | Measuring the added value of stock recommendations |
| title_sort | measuring the added value of stock recommendations |
| work_keys_str_mv | AT jonesh measuringtheaddedvalueofstockrecommendations AT andersona measuringtheaddedvalueofstockrecommendations AT martinezj measuringtheaddedvalueofstockrecommendations |