Title

Stock Price Reactions To Recommendations In The Wall Street Journal "Small Stock Focus" Column

Abstract

This paper examines the information content of the "Small Stock Focus" column in the Wall Street Journal. The paper contributes to the literature by examining a source of secondary information that is readily available on a daily basis but has not been investigated. The results for the second half of 1993 suggest that the column tends to focus on stocks that have very large price changes, with an average absolute value that is more than 9%, on the day prior to the column publication date. Many of the companies appearing in the column appeared more than once in the six-month period covered by the study. The results are mixed with the strongest information content being associated with the good news, non-repeating observations. When repeat observations for the same company were excluded for the good news events, the AR0 was 80 basis points and statistically significant and the CAR for days 1 through 5 was -1.61% and statistically significant. The volume analysis indicated that the non-repeating observations generally had a lower trading volume and larger AR-1 than the repeating observations, suggesting that there is more information content for the less actively traded securities. © 1999 Elsevier Science Inc.

Publication Date

1-1-1999

Publication Title

Quarterly Review of Economics and Finance

Volume

39

Issue

3

Number of Pages

379-389

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1016/S1062-9769(99)00006-X

Socpus ID

0041594063 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/0041594063

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