TY  - JOUR
AU  - Jegadeesh,Narasimhan
AU  - Kim,Woojin
TI  - Do Analysts Herd? An Analysis of Recommendations and Market Reactions
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12866
PY  - 2007
Y2  - January 2007
UR  - http://www.nber.org/papers/w12866
L1  - http://www.nber.org/papers/w12866.pdf
N1  - Author contact info:
Narasimhan Jegadeesh
Goizueta Business School
Emory University
1300 Clifton Road
Suite 507
Atlanta, GA 30322
Tel: 404/727-4821
E-Mail: narasimhan_jegadeesh@bus.emory.edu

Woojin Kim
SNU Business School
Seoul National University
1 Gwanak Ro
Gwanak-gu
Seoul, 151-916
Korea
Tel: +82-2-880-5831
E-Mail: woojinkim@snu.ac.kr
AB  - This paper develops and implements a new test to investigate whether sell-side analysts herd around the consensus when they make stock recommendations. Our empirical results support the herding hypothesis. Stock price reactions following recommendation revisions are stronger when the new recommendation is away from the consensus than when it is closer to it, indicating that the market recognizes analysts' tendency to herd. We find that analysts from larger brokerages and analysts following stocks with smaller dispersion across recommendations are more likely to herd.
ER  -