Institutional Holdings and Analysts' Stock Recommendations PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Institutional Holdings and Analysts' Stock Recommendations PDF full book. Access full book title Institutional Holdings and Analysts' Stock Recommendations by Xia Chen. Download full books in PDF and EPUB format.
Author: Xia Chen
Publisher:
ISBN:
Category :
Languages : en
Pages : 51
Get Book Here
Book Description
Prior studies document that institutional investors outperform the market. We investigate whether this superior performance is partly derived from institutional investors' use of sell-side analysts' stock recommendations. First, we find that the quarterly change in institutional ownership is positively correlated with consensus recommendations. After controlling for other determinants of institutional holdings, the quarterly change in institutional ownership is on average 0.90% higher for firms with favorable recommendations than for those with unfavorable recommendations. Second, using large trades to proxy for institutional trading, we find that there are more buyer-initiated than seller-initiated large trades around favorable recommendations and vice versa for unfavorable recommendations. Lastly, we find that the change in institutional ownership that is explained by stock recommendations is associated with positive abnormal returns in the future, about 4.2% per year. Overall, these results indicate that institutional investors trade upon stock recommendations and such trading contributes to their superior performance.
Author: Xia Chen
Publisher:
ISBN:
Category :
Languages : en
Pages : 51
Get Book Here
Book Description
Prior studies document that institutional investors outperform the market. We investigate whether this superior performance is partly derived from institutional investors' use of sell-side analysts' stock recommendations. First, we find that the quarterly change in institutional ownership is positively correlated with consensus recommendations. After controlling for other determinants of institutional holdings, the quarterly change in institutional ownership is on average 0.90% higher for firms with favorable recommendations than for those with unfavorable recommendations. Second, using large trades to proxy for institutional trading, we find that there are more buyer-initiated than seller-initiated large trades around favorable recommendations and vice versa for unfavorable recommendations. Lastly, we find that the change in institutional ownership that is explained by stock recommendations is associated with positive abnormal returns in the future, about 4.2% per year. Overall, these results indicate that institutional investors trade upon stock recommendations and such trading contributes to their superior performance.
Author: Andreas Chouliaras
Publisher:
ISBN:
Category :
Languages : en
Pages : 41
Get Book Here
Book Description
I analyze 18510 SEC EDGAR Form 10-K (annual reports), for NASDAQ, NYSE and AMEX (NYSE MKT) stocks, along with 176565 SEC EDGAR Form 13-F (quarterly reports of institutional investors holdings), and analysts' recommendations, from 2001 until 2015. I find that (i) 10-K pessimism negatively affects stock holdings after the filing, (ii) institutions do not appear to have forecasting power as to how pessimistic the annual report will be, as they do not adjust their holdings in the pessimistic stocks before the 10-K filing takes place, (iii) an increase in the number of institutional investors that hold a stock leads to an increase in stock prices after the 10-K filing (iv) institutions increase their positions in stocks that had positive returns one (1) to twelve (12) months before the 10-K filing (v) analysts' recommendations are affected by 10-K pessimism three (3) to nine (9) months after the 10-K filing, (vi) contrary to the cross-section of institutional investors, analysts do appear to have some forecasting power over how pessimistic the annual report will be, a few months before the 10-K filing month.
Author: Majid Darvishan
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
Using a broad panel of NYSE-, AMEX-, or NASDAQ-listed stocks, this paper studies the relation between institutional ownership concentration and stock price informativeness. One channel through which ownership concentration affects price informativeness is competition among institutional investors that trade on their private information. Stocks with less concentrated ownership are priced more efficiently, even after controlling for variation in institutional holdings, liquidity, and analyst coverage. The price adjustment is also faster for firms with lower ownership concentration.The higher informativeness cannot be explained by insider ownerships that tend to be more concentrated.
Author:
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 32
Get Book Here
Book Description
Author: Patricia C. O'Brien and Ravi Bhushan
Publisher:
ISBN:
Category :
Languages : en
Pages : 28
Get Book Here
Book Description
Author: Lucy F. Ackert
Publisher:
ISBN:
Category : Corporate profits
Languages : en
Pages : 40
Get Book Here
Book Description
Author: Galen Burghardt
Publisher: John Wiley & Sons
ISBN: 1118103122
Category : Business & Economics
Languages : en
Pages : 373
Get Book Here
Book Description
A practical guide to institutional investing success Managed Futures for Institutional Investors is an essential guide that walks you through the important questions that need to be addressed before investing in this asset class and contains helpful direction for investors during the investing process. Backed by years of institutional experience, the authors reveal the opportunities offered by managed futures. They also include information on practices in the managed futures area and present the various analytical tools and building blocks required to use managed futures effectively. The book also contains insight on the issues that must be addressed when building and evaluating portfolios. Shows where to find data to evaluate managed futures and explains how managed futures are regulated Offers guidance on how to apply classic portfolio construction tools to managed futures Reveals how managed futures investments can help investors evaluate and meet risk, return, and liquidity objectives Managed Futures for Institutional Investors provides all the practical information to manage this type of investment well.
Author: Simona Mola
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
"Prior studies have shown that investment banking affiliations place pressure on analysts to produce optimistic recommendations on the investment bank's stock-clients. Our analysis of a large sample of recommendations issued from 1995 through 2003 indicates that a mutual fund affiliation also affects analysts' research. That is, analysts are likely to look favorably at stocks held by the affiliated mutual funds. Controlling for a variety of factors including the investment banking affiliation, we find that the greater the portfolio weight of a stock for the affiliated mutual funds, the more optimistic the analyst rating becomes when compared to the consensus. Reputation partly restrains the optimism of analyst recommendations. In fact, the presence of other institutional investors as shareholders of the recommended stocks curbs analyst optimism. Nevertheless, from 1999 through 2001, star analysts report the most optimism when they recommend stocks in the portfolios of affiliated mutual funds"--Federal Reserve Bank of St. Louis web site.
Author: Darin G. Clay
Publisher:
ISBN:
Category :
Languages : en
Pages : 48
Get Book Here
Book Description
Institutional shareholdings have a systematically positive effect on firm value and alter the Morck, Shleifer, and Vishny (1988) finding of a nonmonotonic relation between insider ownership and value. The evidence indicates that, on average, a 1% increase in institutional stock ownership translates to a 0.6% increase in the firm's market-to-book ratio, or an increase of $125M for the mean firm in cross-sectional analysis. Controlling for institutional holdings converts the original MSV finding - that firm value first increases with stock ownership by the board, then decreases, and then increases again - to one in which firm value uniformly increases with greater board ownership. These findings support the view that increased incentives for monitoring both by the board and by institutional investors consistently leads to higher company value. The evidence also indicates that the positive relation between institutional holdings and firm value is stronger in firms with higher discretionary cash flows and in the period following the 1992 adoption of proxy rule amendments that increased the bargaining power of institutions.
Author: Stephen T. McClellan
Publisher: FT Press
ISBN: 0137036124
Category : Business & Economics
Languages : en
Pages : 256
Get Book Here
Book Description
Discover the truth about stock analysts’ research. The Truth About Wall Street Stock Research–Now 100% Updated for Today’s Markets! They mislead. They confuse. You can’t afford to listen to one word stock analysts say–especially not right now. Wall Street won’t tell you how to protect your capital or steer you toward gains. The Street is good at selling, not analyzing; it wants you to trade, not invest. In Full of Bull, one of the Street’s leading insiders reveals the hidden code behind Wall Street’s Byzantine practices. For decades, Stephen McClellan was one of the Street’s top analysts–he knows exactly how the game is played. Now, in this revised guide for the individual investor, he describes how Wall Street came to cost investors billions by denying the realities of a market collapse in progress. He explains how a congenitally favorable bias led brokerages to keep recommending stocks, such as AIG and Fannie Mae, up until the moment of their ultimate demise. In Full of Bull, you’ll learn how to look for analysts’ favoritism and blind spots; how to react appropriately to upgrades, downgrades, and price targets; and how to recognize what company announcements really mean. Drawing on his immense body of experience analyzing top companies, McClellan shows you how to systematically evaluate a company’s prospects and choose investments based on principles that work. This is exactly the kind of objective, focused guidance you won’t be getting from your broker!
