Workshop Series: Alexey Feigin
We examine daily and intraday market reactions to the electronic dissemination of the stock recommendations of a star mining analyst, Keith Goode. Goode is unique in the analysts world, being a commissioned analyst - each firm pays Goode for a recommendation. Goode disseminates his recommendations to a private but extensive subscriber base via email. We find abnormal short run price reactions to Goode's recommendations, which mostly come from his gold stock recommendations. We find a corresponding increase in volume, traded value, trade frequency and limit order book activity during the first hour of trading following the release of his recommendations. We also find an increase in the buyer-initiated proportion of market order trades during the first and second hours.
Alexey Feigin is a PhD student at the School of Accounting at University of Technology, Sydney. He holds an undergraduate computer science degree and a master's degree in accounting research. He is interested in strengths and weaknesses of statistical methods and applying innovative computational approaches in the accounting and capital markets research settings.