Title

"Wall $Treet Week": Information Or Entertainment?

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.

Publication Date

1-1-2003

Publication Title

Financial Analysts Journal

Volume

59

Issue

1

Number of Pages

45-53

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.2469/faj.v59.n1.2502

Socpus ID

20444456137 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/20444456137

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