Sell‐side analyst recommendation revisions and hedge fund trading before and after regulation fair disclosure
研究了公平披露规则前后对冲基金和非对冲基金交易与分析师共识推荐变化的关系，发现规则后对冲基金交易与推荐变化由正相关转为负相关，且其逆向交易表现更好，表明对冲基金信息处理能力更强。
Abstract We examine institutional trading in relation to changes in consensus recommendations over time. We find that pre‐Reg FD's positive contemporaneous relation between hedge fund trading and change in consensus becomes negative after Reg FD, but the positive relation between nonhedge fund trading and change in consensus continues even after Reg FD. Furthermore, during post‐Reg FD, while the performance of hedge funds’ trades that contradict with analysts improve, nonhedge funds’ trades that agree with analysts significantly deteriorate. Our evidence suggests that hedge funds have better information processing skill and are more cognizant about the role of selective information in analyst recommendations.