• Media type: E-Book
  • Title: Salient Anchor and Analyst Recommendation Downgrade
  • Contributor: Li, Fengfei [Author]; Lin, Chen [Other]; Lin, Tse-Chun [Other]
  • imprint: [S.l.]: SSRN, [2020]
  • Extent: 1 Online-Ressource (60 p)
  • Language: English
  • DOI: 10.2139/ssrn.2517238
  • Identifier:
  • Origination:
  • Footnote: Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 25, 2020 erstellt
  • Description: We find that analysts are more likely to downgrade stocks when prices approach the 52-week high. The results are stronger for stocks with higher information asymmetry but moderated by analysts' reputation, work experience, and educational background. We also find a strategy that shorts stocks with recommendation downgrades is less profitable for the downgrades near 52-week high than for other downgrades. Moreover, these downgraded firms with prices near 52-week high subsequently experience relatively less negative earnings forecast revisions. These results suggest that these downgrade decisions are less likely to be information-driven and consistent with our anchoring interpretation
  • Access State: Open Access