Study On The Investment Value Of Securities Analysts’ Recommendation Rating

With the development of China’s securities market improvement and investment advisory establish standardized system, securities analysts is increasingly becoming important influence stock market strength. Securities analyst rating report released more and more, these ratings report for investors, especially retail investors a great influence on these ratings report has recommended that the investment value of the stock is the starting point of this study. Investors should also report on how to effectively deal with rating analysts and rating changes? Based CSMAR database, select a standardized 2012-2013 weekly ratings for the effective rating report buying and holdings of samples by event study report was released on the week before and after 12 weeks of earnings and turnover conduct empirical research and analysis.On the whole, the final sample for buy rating 4127 reports, rating the holdings of 5567 reports, published reports of empirical research and Analysis on the situation and when returns and volume before and after 12 weeks through four different income adjustment model and event study method, found in the week before the recommended, recommended the stock has excess income significantly, in the recommended when the week, excess revenue reached the maximum, while turnover increased significantly, recommended weeks no significant abnormal return.Look from the structure, namely the combination of rating changes were analyzed, excluding missing data samples, the final sample for buy rating 3943 reports, rating the holdings of 5283 reports, three different income adjustment model and event study method is used, to study the recommended rating changes on stock price, found that occupies 80% of rating in the recommended report for the entire analysts maintain report because of low excess return itself to reduce the overall investment value analyst recommendation report, report rating to buy or overweight with short-term investment value, there is significant after the recommendation of stock price drift phenomenon first ratings and rating downgrades report.