1 option
Do Analysts Herd? An Analysis of Recommendations and Market Reactions / Narasimhan Jegadeesh, Woojin Kim.
- Format:
- Book
- Author/Creator:
- Jegadeesh, Narasimhan.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w12866.
- NBER working paper series no. w12866
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2007.
- Summary:
- 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.
- Notes:
- Print version record
- January 2007.
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