Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 25, 2020 erstellt
Description:
We find that recommendations of sell-side analysts on a particular stock are negatively influenced by the quality of the other stocks they are recommending that month, even after controlling for explicit benchmarks. This implies that if an analyst is rating a strong pool in a month, the best firm is rated less highly than it would be otherwise, and if the analyst is rating a weak pool that month, the worst firm is rated less badly than it would be otherwise. We document that the average difference of announcement return between “Strong Buy” and “Hold/Underperform/Sell” is 2.6%, while the average difference between “Strong Buy” of the strong pool and “Hold/Underperform/Sells” of the weak pool is 3.9%