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http://hdl.handle.net/10419/23165
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| Title: | | Analyst Recommendations and Nasdaq Market Making Activity  |
| Authors: | | Mizrach, Bruce |
| Issue Date: | | 2003 |
| Series/Report no.: | | Working papers / Rutgers University, Department of Economics 2003,07 |
| Abstract: | | I investigate the linkage between liquidity provision by Nasdaq market makers and analysts in the same firm. Using three measures of market activity, I find that Nasdaq firms are more likely to provide buy side liquidity in anticipation of upgrades in the period 1999-2000. ECN activity supports this pattern. Firm level evidence shows that 15 of 42 market makers studied engage in significant pre-recommendation activity. I estimate cumulative abnormal returns of more than 75% and profits of almost $600 million in a sample of 47 large capitalization stocks. |
| Subjects: | | analyst Nasdaq market maker |
| JEL: | | G24 G14 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Working Papers, Department of Economics, Rutgers University
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| 2003-07.pdf | | 291.72 kB | Adobe PDF |
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