Open AccessThe Performance Of Popular Investment Magazine Stock Analysts
Author(s) -
Richard G. Brody,
Lynn L. Rees
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v12i1.5835
Subject(s) - sample (material) , stock (firearms) , investment (military) , business , stock price , investment decisions , stock market , advertising , financial economics , economics , monetary economics , accounting , finance , behavioral economics , political science , law , mechanical engineering , paleontology , chemistry , chromatography , horse , series (stratigraphy) , politics , engineering , biology
This study examines the stock price performance for a sample of 239 firms that were recommended by analysts in popular investment magazines (214 buy and 25 sell recommendations). The study was motivated by the magazines claims that abnormal profits can be earned by following the investment advice published in their respective magazines. The empirical results are not consistent with this claim. For our sample and during the time period investigated, investing in the buy recommendations and selling short the sell recommendations would not earn returns in excess of the market average.