|
|
|
|
||||
|
||||
Do Analysts Herd? An Analysis of Recommendations and Market ReactionsNarasimhan JegadeeshEmory University - Department of Finance Woojin KimSeoul National University - Business School January 2008 Abstract: This paper develops and implements a new test to investigate whether sell-side analysts herd around the consensus when they make stock recommendations. Our empirical results support the herding hypothesis. Stock price reactions following recommendation revisions are stronger when the new recommendation is away from the consensus than when it is closer to it, indicating that the market recognizes analysts' tendency to herd. We find that analysts from larger brokerages and analysts following stocks with smaller dispersion across recommendations are more likely to herd.
Number of Pages in PDF File: 46 Keywords: herding, market efficiency, private information JEL Classification: G14, G20, D82, D83 working papers seriesDate posted: March 25, 2008Suggested CitationContact Information
|
|
|||||||||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo5 in 0.375 seconds
