"Wall Street Week": Information or entertainment?

    Authors

    E. J. Ferreira;S. D. Smith

    Abbreviated Journal Title

    Financ. Anal. J.

    Keywords

    Equity Investments : other; Portfolio Management : equity strategies; STOCK-PRICES; RECOMMENDATIONS; COLUMN; RETURNS; SIZE; Business, Finance

    Abstract

    The purpose of the study we report was to determine the information content of the recommendations made by panelists during 1997 on "Wall $treet Week with Louis Rukeyser." Using event-study methodology for the short term, we found a statistically significant positive abnormal return of 0.65 percent for the recommendations on the first trading day after the show on Friday. To determine the abnormal long-term (one- and two-year) average holding-period returns, we used two matching processes. Using industry and size matching, we found not only that the portfolio of recommended stocks improved in value during the following eight quarters but that its increase in value was higher than for the matched sample in all eight quarters and statistically significantly higher in half of the eight quarters. Using industry, size, and book-to-market matching, we found similar results. Overall, this study's results suggest that the panelist recommendations have significant information content.

    Journal Title

    Financial Analysts Journal

    Volume

    59

    Issue/Number

    1

    Publication Date

    1-1-2003

    Document Type

    Article

    Language

    English

    First Page

    45

    Last Page

    +

    WOS Identifier

    WOS:000181132500007

    ISSN

    0015-198X

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