Can Investors Profit from the Prophets? Security Analyst Recommendations and Stock Returns

By Brad M. Barber, Reuven Lehavy, Maureen F. McNichols, Brett Trueman. 2001

843 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/f51b1066f97f3586c50e98f74eae3652f4863e97

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Finance

Citations in the corpus

Analyzing the Analysts: When Do Recommendations Add Value? (2004, background): “Our conclusions about the incremental value of the level of analyst recommendations differ from that in Barber et al. (2001a). Barber et al. (2001a) find that the abnormal returns to their analyst recommendations based strategy are significantly positive under the four-factor characteristic model pr”
Identifying Expectation Errors in Value/Glamour Strategies: A Fundamental Analysis Approach (2012, positive): “…such as bond ratings downgrades (Dichev and Piotroski 2001), changes in analyst forecasts (Givoly and Lakonishok 1979; Stickel 1990;Chan, Jegadeesh, and Lakonishok 1996; Gleason and Lee 2003), and changes in analyst recommendations (Womack 1996; Barber et al. 2001; Jegadeesh et al. 2004).”
The persistence of earnings and cash flows and the role of special items: Implications for the accrual anomaly (2006, positive): “This is consistent with findings by Barber, Lehavy, McNichols, and Trueman (2001) .”
The Illusory Nature of Momentum Profits (2004, neutral): “, 2003), ex-dividend day returns (Karpoff and Walkling, 1990), switching strategies (Mech, 1993; Knez and Ready, 1996), closed-end fund discounts (Pontiff, 1996), long-run equity offering returns (Pontiff and Schill, 2002), post-earnings price drift (Lesmond, 2000), and analyst recommendation underr”
The Predictive Content of Aggregate Analyst Recommendations (2009, neutral): “Barber et al. [2006] admit that the decrease in buy recommendations in 2002 “probably was due, in part, to a worsening economy and a declining stock market.”
Analyst Recommendations, Mutual Fund Herding, and Overreaction in Stock Prices (2014, positive): “A large body of literature documents that sellside analyst research has investment value (see, e.g., Stickel 1995, Womack 1996, Barber et al. 2001, Jegadeesh et al. 2004).”
Conflicts of Interest and Stock Recommendations: The Effects of the Global Settlement and Related Regulations (2009, positive): “We estimate the following model: Pr(REC = type) = α1BIG10× PRE + α2PASTMKTPERF × PRE +α3PASTFIRMPERF × PRE + α4POST (1) +α5BIG10× POST + α6PASTMKTPERF × POST +α7PASTFIRMPERF × POST + ε, where REC is a dummy variable equal to 1 if the recommendation is of a certain type (optimistic or pessimistic) us”
The long-term performance of acquiring firms: A re-examination of an anomaly (2009, background): “For example, Barber et al. (2001) reported negative SMB coefficient for larger size groups (group 2 and 3) while examining long-term performance of portfolios formed on the basis of analyst recommendation (Table 4, p.”
The Financial Analyst Forecasting Literature: A Taxonomy with Suggestions for Further Research (2008, neutral): “Some studies contend that, while markets may be inefficient with respect to specific pieces of information, like analysts' stock recommendations, exploiting such market inefficiency is unprofitable because of transaction costs (Barber et al., 2001).”