Resource title

Analyst Recommendations and Nasdaq Market Making Activity

Resource image

image for OpenScout resource :: Analyst Recommendations and Nasdaq Market Making Activity

Resource description

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.

Resource author

Bruce Mizrach

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/23165

Resource license

Adapt according to the presented license agreement and reference the original author.