When Analysts Talk, Do Institutional Investors Listen? Evidence from Target Price Changes

Shannon Lin; Hongping Tan; Zenan Zhang

doi:10.1111/fire.12102

When Analysts Talk, Do Institutional Investors Listen? Evidence from Target Price Changes

Shannon Lin, Hongping Tan, Zenan Zhang

Rowe School of Business

Management

Résultat de recherche: Article › examen par les pairs

7 Citations (Scopus)

Résumé

We find that institutions trade in the same direction as target price changes based on 6,415 U.S. firms from 1999 to 2011, even after controlling changes in stock recommendations and earnings forecasts. The impact of target price changes on institutional trading is more pronounced for small firms, firms followed by few analysts, and illiquid firms, and is mainly limited to transient institutions. We do not find any outperformance for institutions to follow analysts' target price forecasts, suggesting that institutions could find it easier to justify their investment decisions by following analyst forecasts, although such trading does not result in outperformance.

Langue d'origine	English
Pages (de-à)	191-223
Nombre de pages	33
Journal	Financial Review
Volume	51
Numéro de publication	2
DOI	https://doi.org/10.1111/fire.12102
Statut de publication	Published - mai 1 2016

Note bibliographique

Publisher Copyright:
© 2016 Eastern Finance Association.

ASJC Scopus Subject Areas

Finance
Economics and Econometrics

Accès au document

10.1111/fire.12102

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When Analysts Talk, Do Institutional Investors Listen? Evidence from Target Price Changes

Résumé

Note bibliographique

ASJC Scopus Subject Areas

Accès au document

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