Buys, holds, and sells: The distribution of investment banks' stock ratings and the implications for the profitability of analysts' recommendations

被引：171

作者：

Barber, BM

Lehavy, R

McNichols, M

Trueman, B ^{[1
]}

机构：

[1] Univ Calif Los Angeles, Anderson Sch Management, Los Angeles, CA 90024 USA

[2] Univ Calif Davis, Grad Sch Management, Davis, CA 95616 USA

[3] Univ Michigan, Ross Sch Business, Ann Arbor, MI 48109 USA

[4] Stanford Univ, Grad Sch Business, Stanford, CA 94305 USA

来源：

JOURNAL OF ACCOUNTING & ECONOMICS | 2006年 / 41卷 / 1-2期

关键词：

analyst; recommendation; NASD; 2711; investment bank; stock rating; broker;

D O I：

10.1016/j.jacceco.2005.10.001

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

This paper analyzes the distribution of stock ratings at investment banks and brokerage firms and examines whether these distributions can predict the profitability of analysts' recommendations. We document that the percentage of buys decreased steadily starting in mid-2000, likely due, at least partly, to the implementation of NASD Rule 2711, requiring the public dissemination of ratings distributions. Additionally, we find that a broker's ratings distribution can predict recommendation profitability. Upgrades to buy (downgrades to hold or sell) issued by brokers with the smallest percentage of buy recommendations significantly outperformed (underperformed) those of brokers,with the greatest percentage of buys. (c) 2005 Elsevier B.V. All rights reserved.

引用

页码：87 / 117

页数：31

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