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- Title
Analyst Tipping: Additional Evidence.
- Authors
Markov, Stanimir; Muslu, Volkan; Subasi, Musa
- Abstract
We examine whether analysts tip investors during investor conferences. We find that conference-day abnormal returns of a presenting company are about 0.6% higher when the conference is hosted by an analyst who will initiate coverage with a Buy recommendation than when the conference is hosted by non-initiating analysts. Furthermore, conference-day abnormal returns of the presenting company amount to half of the price run-up during the 20 trading days prior to the Buy initiation. Finally, there is a statistically and economically significant price run-up prior to a Sell initiation (by about -0.7%) when the analyst who will initiate coverage with a Sell recommendation hosts a conference but does not invite the company to present. Our findings collectively suggest that analysts, rather than companies, tip select investors about upcoming initiations during conferences.
- Subjects
INVESTORS; FINANCIAL analysts; SECURITIES analysts; CONVENTION organizers; INITIATIONS (into trades, organizations, etc.); CONFERENCES &; conventions
- Publication
Journal of Business Finance & Accounting, 2017, Vol 44, Issue 1/2, p94
- ISSN
0306-686X
- Publication type
Article
- DOI
10.1111/jbfa.12231