Incentives, Clienteles, and Information Production: New Evidence from Investor-paid and Issuer-Paid Agency Credit Ratings and Equity Analyst Recommendations

2020 ◽  
Author(s):  
Thomas J. Chemmanur ◽  
Igor Karagodsky ◽  
Francesca Toscano
Keyword(s):  
Credit Ratings ◽  
Information Production ◽  
Analyst Recommendations ◽  
New Evidence

scholarly journals Informational content of options around analyst recommendations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qingxia Wang ◽  
Robert Faff ◽  
Min Zhu
Keyword(s):  
Stock Returns ◽  
Probit Model ◽  
Analyst Recommendations ◽  
Content Type ◽  
Put Options ◽  
Model Free ◽  
Risk Managers ◽  
New Evidence ◽  
Option Market

PurposeMore studies have investigated the relation between option measures and stock returns during scheduled corporate events. This study adds to the literature and investigates the informational role of options concerning stock returns following unscheduled corporate news events. The authors focus on individual analysts' recommendation changes rather than consensus revisions, as the recommendation consensus might discard a large amount of potentially valuable information in the aggregation process.Design/methodology/approachBased on the econometric model, the authors follow Bakshi et al. (2003) to construct the model-free option implied measures. The authors further decompose the implied option variance into upside and downside components. In such a way, the different informational roles of call and put options can be distinguished. A variety of regression analyses are conducted to examine the predictive power of option implied measures, and the ordered probit model is used to test the tipping hypothesis of analyst recommendations.FindingsThis study’s results show that the option market impounds the “valuable” firm-specific news; thus, the pre-event option market is strongly related to stock returns around recommendations even though recommendation changes are largely “unscheduled”. At the same time, these results suggest that upside (good) and downside (bad) implied volatilities contain distinctive information on subsequent stock returns.Originality/valueThis study provides new evidence that an increase in upside (downside) volatility around analyst recommendation changes would increase the probability that analysts upgrade (downgrade) the stock. The findings provide implications for investors and risk managers in making investment decisions.

Analysis of Unsolicited Credit Ratings in Japan: New Evidence from Moody's

2009 ◽  
Vol 12 (01) ◽  
pp. 103-123 ◽  
Author(s):  
Lisa M. Fairchild ◽  
Susan M. V. Flaherty ◽  
Yoon S. Shin
Keyword(s):  
Private Information ◽  
Credit Ratings ◽  
Public Information ◽  
Inside Information ◽  
Rating Agencies ◽  
Rating Agency ◽  
Japanese Firms ◽  
Unsolicited Ratings ◽  
Available Information ◽  
New Evidence

Previous studies show that the unsolicited ratings of S&P and Fitch are lower than the solicited ratings assigned by these two agencies. The unsolicited ratings of S&P and Fitch are based on publicly available information for a firm. However, no previous study has examined the unsolicited ratings of Moody's because Moody's does not disclose whether its ratings are solicited or unsolicited. Using Moody's solicited and unsolicited ratings collected from a survey of Japanese firms, we find that unsolicited credit ratings are still lower than solicited ratings even though firms with unsolicited ratings provide Moody's with some degree of inside information. We also compare the unsolicited ratings of S&P with those of Moody's and find that Moody's ratings are no different than those assigned by S&P although S&P's unsolicited ratings are based on public information. Therefore, we conclude that, regardless of the rating agency, unsolicited ratings are lower than solicited ratings because firms with unsolicited ratings provide incomplete private information to rating agencies.

Systematic effects in observed parallaxes

1978 ◽  
Vol 48 ◽  
pp. 31-35
Author(s):  
R. B. Hanson
Keyword(s):  
Error Estimates ◽  
Zero Point ◽  
Absolute Zero ◽  
Apparent Magnitude ◽  
Coherent System ◽  
Preliminary Results ◽  
General Catalogue ◽  
Systematic Effects ◽  
New Evidence ◽  
Right Ascension

Several outstanding problems affecting the existing parallaxes should be resolved to form a coherent system for the new General Catalogue proposed by van Altena, as well as to improve luminosity calibrations and other parallax applications. Lutz has reviewed several of these problems, such as: (A) systematic differences between observatories, (B) external error estimates, (C) the absolute zero point, and (D) systematic observational effects (in right ascension, declination, apparent magnitude, etc.). Here we explore the use of cluster and spectroscopic parallaxes, and the distributions of observed parallaxes, to bring new evidence to bear on these classic problems. Several preliminary results have been obtained.

MERLIN Finds New Evidence of Ranolazine Safety

2007 ◽  
Vol 40 (9) ◽  
pp. 36
Author(s):  
BRUCE JANCIN
Keyword(s):  
New Evidence

Vaccination for travellers – new evidence and recommendations

2001 ◽  
Vol 58 (6) ◽  
pp. 362-366 ◽  
Author(s):  
Matius P. Stürchler ◽  
R. P. Steffen
Keyword(s):  
Hepatitis B ◽  
Hepatitis A ◽  
New Evidence

Impfungen sind einfache und effektive Maßnahmen zur Verhinderung von Reisekrankheiten. Compliance-Probleme sind gering, da alle Impfungen noch vor Abreise verabreicht werden und bei manchen Impfungen nur eine Dosis für den zuverlässigen Schutz nötig ist. Für jeden Reisenden sind die Hepatitis A- und die Diphtherie-Tetanus-Impfung empfohlen, für Asien und Afrika auch die Polioimpfung. Bei Reisen >30 Tagen, jüngeren Personen und Reisenden mit Risikoverhalten sollte immer auch eine Hepatitis B-Impfung, eventuell als Kombination mit Hepatitis A in Betracht gezogen werden. Je nach Reisestil, -destination und -dauer können auch weitere Impfungen wie z.B. die Typhus-, Tollwut-, Zeckenenzephalitis-, Grippe-, Masern-Mumps-Röteln-, Gelbfieber-, Meningokokkenmeningitis- und die Japanische Enzephalitis-Impfung in Frage kommen. Mehrere Impfungen können gleichzeitig verabreicht werden – eine Staffelung ist nicht nötig. i BAG Supplementum VI, Stand Juli 2000 «Impfungen für Auslandreisende»; http://www.admin.ch/bag/infekt/prev/reisemed/index.htm; Safetravel http://www.safetravel.ch; Tropimed

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