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dc.contributor.authorHess, Dieter E.en_US
dc.contributor.authorKreutzmann, Danielen_US
dc.contributor.authorPucker, Oliveren_US
dc.date.accessioned2010-11-10en_US
dc.date.accessioned2010-11-19T10:07:58Z-
dc.date.availablestart=2010-11-19T10:07:58Z; end=2013-02-13-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/41635-
dc.description.abstractWe document that investors can actually profit from the contemporaneous link between earnings accuracy and recommendation profitability (Loh and Mian (2006)). Differentiating between 'able' and 'lucky' analysts we suggest an implementable, i.e. look-ahead bias free, trading strategy that yields annual excess returns of 11.5% before transactions costs during our 1994 - 2007 sample period. Rather than past track records analysts' characteristics indicate their ability to identify undervalued stocks. We find that a reputation effect, i.e. higher recommendation announcement returns, is insignificant. This indicates that the ability is real. Able analysts can distinguish between firms that will over- or underperform.en_US
dc.language.isoengen_US
dc.publisherCentre for Financial Research Cologneen_US
dc.relation.ispartofseriesCFR working paper 10-17en_US
dc.subject.jelG14en_US
dc.subject.jelG17en_US
dc.subject.jelG24en_US
dc.subject.ddc330en_US
dc.subject.keywordanalystsen_US
dc.subject.keywordtrading strategyen_US
dc.subject.keywordprofitability of recommendationsen_US
dc.subject.stwAnlageberatungen_US
dc.subject.stwFinanzanalystenen_US
dc.subject.stwErfolgsrechnungen_US
dc.subject.stwWertpapierhandelen_US
dc.subject.stwStrategieen_US
dc.subject.stwRentabilitäten_US
dc.subject.stwSchätzungen_US
dc.subject.stwWelten_US
dc.titleProjected earnings accuracy and the profitability of stock recommendationsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn638845548en_US
dc.relation.isreplacedbyhttp://hdl.handle.net/10419/70119-
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:cfrwps:1017-
Appears in Collections:CFR Working Papers, Centre for Financial Research (CFR), Universität Köln

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