Len Costa, of the CFA Institute, has an interesting piece related to a paper I’ve written with some colleagues at Rice and Creighton.
Here is a picture of the ‘bottomline’:
Long ideas experience a short term spike of around 1% and then drift; short ideas shift down ~2% and then flatline. Overall conclusion: Sumzero.com analyst reports matter to the market.
For the full study, head over to SSRN: