The Impact of NASD Rule 2711 and NYSE Rule 472 on Analyst Behavior: The Strategic Timing of Recommendations Issued on Weekends

doi:10.1111/jbfa.12211

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	The Impact of NASD Rule 2711 and NYSE Rule 472 on Analyst Behavior: The Strategic Timing of Recommendations Issued on Weekends
	Dong, Yi 1; Hu, Nan 2,3
刊名	JOURNAL OF BUSINESS FINANCE & ACCOUNTING
	2016-07-01
卷号	43 期号:7-8 页码:950-975
关键词	analyst recommendations limited attention market inefficiency weekend NASD Rule 2711 NYSE Rule 472
ISSN号	0306-686X
DOI	10.1111/jbfa.12211
英文摘要	Amendments to NASD Rule 2711 and NYSE Rule 472, enacted in May 2002, mandate that sell-side analysts disclose the distribution of their security recommendations by buy, hold and sell category. This regulation enhances the transparency of analysts' information and mitigates the long-recognized optimistic bias in their recommendations. However, we find that analysts are more likely to issue sell recommendations or downgrade revisions on weekends when investors have limited attention after these rule changes. This pattern is more pronounced for prestigious analysts, who are more likely to influence stock prices. Market reaction tests reveal an incomplete immediate response and a greater drift to unfavorable recommendations issued on weekends. Finally, analysts who are more likely to release unfavorable recommendations on weekends exhibit higher future forecast accuracy. Our findings suggest that, while these regulatory changes effectively reduce analysts' optimistic bias, they are also associated with an increased prevalence of a different form of distortion in the capital market.
WOS研究方向	Business & Economics
语种	英语
出版者	WILEY
WOS记录号	WOS:000384833800006
内容类型	期刊论文
源URL	[http://10.2.47.112/handle/2XS4QKH4/1254]
专题	上海财经大学
作者单位	1.Shanghai Univ Finance & Econ, Sch Accountancy, Guoding Rd 777, Shanghai 200433, Peoples R China; 2.Stevens Inst Technol, Sch Business, Hoboken, NJ 07030 USA; 3.Xi An Jiao Tong Univ, Sch Management, Xian, Peoples R China
推荐引用方式 GB/T 7714	Dong, Yi,Hu, Nan. The Impact of NASD Rule 2711 and NYSE Rule 472 on Analyst Behavior: The Strategic Timing of Recommendations Issued on Weekends[J]. JOURNAL OF BUSINESS FINANCE & ACCOUNTING,2016,43(7-8):950-975.
APA	Dong, Yi,&Hu, Nan.(2016).The Impact of NASD Rule 2711 and NYSE Rule 472 on Analyst Behavior: The Strategic Timing of Recommendations Issued on Weekends.JOURNAL OF BUSINESS FINANCE & ACCOUNTING,43(7-8),950-975.
MLA	Dong, Yi,et al."The Impact of NASD Rule 2711 and NYSE Rule 472 on Analyst Behavior: The Strategic Timing of Recommendations Issued on Weekends".JOURNAL OF BUSINESS FINANCE & ACCOUNTING 43.7-8(2016):950-975.