Do Analysts Herd? An Analysis of Recommendations and Market Reactions
- Authors
- Jegadeesh, Narasimhan; Kim, Woojin
- Issue Date
- 2월-2010
- Publisher
- OXFORD UNIV PRESS INC
- Citation
- REVIEW OF FINANCIAL STUDIES, v.23, no.2, pp.901 - 937
- Indexed
- SSCI
AHCI
SCOPUS
- Journal Title
- REVIEW OF FINANCIAL STUDIES
- Volume
- 23
- Number
- 2
- Start Page
- 901
- End Page
- 937
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/117078
- DOI
- 10.1093/rfs/hhp093
- ISSN
- 0893-9454
- Abstract
- This article 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, analysts following stocks with smaller dispersion across recommendations, and analysts who make less frequent revisions are more likely to herd. (JEL G14, G20, D82, D83)
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Collections - Korea University Business School > Department of Business Administration > 1. Journal Articles
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