Buys, Holds, and Sells: The Distribution of Investment Banks' Stock Ratings and the Implications for the Profitability of Analysts' Recommendations

By Brad M. Barber, Reuven Lehavy, Maureen F. McNichols, Brett Trueman. 2006

328 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/2a22622ab56b384b4037024b15afeab7b7d8f1a8

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Citations in the corpus

Do Analyst Conflicts Matter? Evidence from Stock Recommendations (2008, neutral): “…Association of Securities Dealers considerably tightened the regulations on the production and dissemination of sell-side analyst research.31 The findings of Barber et al. (2006) and Kadan et al. (forthcoming) suggest that these regulations exerted a downward pressure on recommendation levels.”
The Informational Role of Bond Analysts (2009, neutral): “Barber et al. (2006) and Kadan, Madureira, Wang, and Zach (2008) document that the positive skewness was reduced but not eliminated at this time.”
Analysts’ Industry Expertise (2012, background): “This approach is similar to prior studies focusing on the investment value of firm recommendations (e.g., Barber et al, 2001, 2006; Boni and Womack, 2006).”
Inside the 'Black Box' of Sell-Side Financial Analysts (2014, positive): “This result is consistent with academic evidence of a positive bias in analysts’ stock recommendations (Barber et al., 2006), and with our interview evidence that sell-side analysts seek to please the investment bankers who use broker votes to evaluate sell-side analysts.”
Ratings Changes, Ratings Levels, and the Predictive Value of Analysts’ Recommendations (2010, neutral): “13 11 Barber et al. (2006) document the historical pattern in the percentages of buys, holds, and sells for the 1996 – June 2003 time period.”
Target Price Accuracy in Equity Research (2010, background): “Following Barber et al. (2006) we can interpret this pattern as a lagged response by analysts to changing market conditions: analysts fail to capture market reversals and start adjusting forecasts too late, thus generating larger prediction errors.”
Do Analysts Practice What They Preach and Should Investors Listen? Effects of Recent Regulations (2009, neutral): “Barber et al. (2006) suggest that market prices react slowly to the information contained in recommendations.”
Evidence of Management Discrimination Among Analysts during Earnings Conference Calls (2008, result): “The distribution of stock recommendation levels is consistent with other research (Chen and Matsumoto 2005, Barber et al. 2005).”