Tipping
Top Cited Papers
- 6 July 2006
- journal article
- Published by Oxford University Press (OUP) in The Review of Financial Studies
- Vol. 20 (3) , 741-768
- https://doi.org/10.1093/rfs/hhl027
Abstract
We investigate the trading of institutions immediately before the release of analysts’ initial buy recommendations. We document abnormally high institutional trading volume and buying beginning five days before recommendations are publicly released. Abnormal buying is related to initiation characteristics that would require knowledge of the content of the report—such as the identity of the analyst and brokerage firm, and whether the recommendation is a strong buy. We confirm that institutions buying before the recommendation release earn abnormal profits. Our results are consistent with institutional traders receiving tips regarding the contents of forthcoming analysts’ reports. (JEL G14, G18, G24)Keywords
This publication has 25 references indexed in Scilit:
- The Value of Client Access to Analyst RecommendationsJournal of Financial and Quantitative Analysis, 2006
- The Development of Secondary Market Liquidity for NYSE‐Listed IPOsThe Journal of Finance, 2004
- The Dynamics of Institutional and Individual TradingThe Journal of Finance, 2003
- The Quiet Period Goes out with a BangThe Journal of Finance, 2003
- Can Investors Profit from the Prophets? Security Analyst Recommendations and Stock ReturnsThe Journal of Finance, 2001
- Institutional Trading and Soft DollarsThe Journal of Finance, 2001
- Information Conveyed in Announcements of Analyst Coverage*Contemporary Accounting Research, 1998
- The Impact of Security Analysts' Monitoring and Marketing Functions on the Market Value of FirmsJournal of Financial and Quantitative Analysis, 1996
- The "Dartboard" Column: Second-Hand Information and Price PressureJournal of Financial and Quantitative Analysis, 1993
- An Analysis of Brokers' and Analysts' Unpublished Forecasts of UK Stock ReturnsThe Journal of Finance, 1984