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- Publisher Website: 10.1016/j.jcorpfin.2021.102033
- Scopus: eid_2-s2.0-85110290893
- WOS: WOS:000694715200003
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Article: Salient Anchor and Analyst Recommendation Downgrade
Title | Salient Anchor and Analyst Recommendation Downgrade |
---|---|
Authors | |
Keywords | Salient anchor 52-week high Analyst recommendation changes Limited attention Trading strategy |
Issue Date | 2021 |
Publisher | Elsevier BV. The Journal's web site is located at http://www.elsevier.com/locate/jcorpfin |
Citation | Journal of Corporate Finance, 2021, v. 69, article no. 102033 How to Cite? |
Abstract | We find that analysts are more likely to downgrade stocks when prices approach the 52-week high. The results are stronger for stocks with higher information asymmetry but moderated by analysts' reputation, work experience, and educational background. We also find a strategy that shorts stocks with recommendation downgrades is less profitable for the downgrades near 52-week high than for other downgrades. Moreover, these downgraded firms with prices near 52-week high subsequently experience relatively less negative earnings forecast revisions. These results suggest that these downgrade decisions are less likely to be information-driven and consistent with our anchoring interpretation. |
Persistent Identifier | http://hdl.handle.net/10722/301156 |
ISSN | 2023 Impact Factor: 7.2 2023 SCImago Journal Rankings: 3.182 |
ISI Accession Number ID |
DC Field | Value | Language |
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dc.contributor.author | Li, F | - |
dc.contributor.author | Lin, C | - |
dc.contributor.author | Lin, TC | - |
dc.date.accessioned | 2021-07-27T08:06:57Z | - |
dc.date.available | 2021-07-27T08:06:57Z | - |
dc.date.issued | 2021 | - |
dc.identifier.citation | Journal of Corporate Finance, 2021, v. 69, article no. 102033 | - |
dc.identifier.issn | 0929-1199 | - |
dc.identifier.uri | http://hdl.handle.net/10722/301156 | - |
dc.description.abstract | We find that analysts are more likely to downgrade stocks when prices approach the 52-week high. The results are stronger for stocks with higher information asymmetry but moderated by analysts' reputation, work experience, and educational background. We also find a strategy that shorts stocks with recommendation downgrades is less profitable for the downgrades near 52-week high than for other downgrades. Moreover, these downgraded firms with prices near 52-week high subsequently experience relatively less negative earnings forecast revisions. These results suggest that these downgrade decisions are less likely to be information-driven and consistent with our anchoring interpretation. | - |
dc.language | eng | - |
dc.publisher | Elsevier BV. The Journal's web site is located at http://www.elsevier.com/locate/jcorpfin | - |
dc.relation.ispartof | Journal of Corporate Finance | - |
dc.subject | Salient anchor | - |
dc.subject | 52-week high | - |
dc.subject | Analyst recommendation changes | - |
dc.subject | Limited attention | - |
dc.subject | Trading strategy | - |
dc.title | Salient Anchor and Analyst Recommendation Downgrade | - |
dc.type | Article | - |
dc.identifier.email | Lin, C: chenlin1@hku.hk | - |
dc.identifier.email | Lin, TC: chunlin@hku.hk | - |
dc.identifier.authority | Lin, C=rp01808 | - |
dc.identifier.authority | Lin, TC=rp01077 | - |
dc.description.nature | link_to_subscribed_fulltext | - |
dc.identifier.doi | 10.1016/j.jcorpfin.2021.102033 | - |
dc.identifier.scopus | eid_2-s2.0-85110290893 | - |
dc.identifier.hkuros | 323528 | - |
dc.identifier.volume | 69 | - |
dc.identifier.spage | article no. 102033 | - |
dc.identifier.epage | article no. 102033 | - |
dc.identifier.isi | WOS:000694715200003 | - |
dc.publisher.place | Netherlands | - |