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The Informative Role of the Value Line Investment Survey: Evidence from Stock Highlights

Published online by Cambridge University Press:  06 April 2009

David R. Peterson
David R. Peterson
Affiliation:
College of Business, Florida State University, Tallahassee, FL 32306.
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Abstract

I examine abnormal stock returns associated with “stock highlights” published by the Value Line Investment Survey. At the time of their publication, stock highlights elicit strong positive abnormal returns. They also have positive abnormal returns at the time of the earnings announcement preceding stock highlight publications. Post-earnings announcement drift is present, but is much too small to explain abnormal returns at the time of the publication of stock highlights. Thus, Value Line stock highlights provide useful information to investors. This information is rapidly reflected in stock prices, consistent with market efficiency.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 30 , Issue 4 , December 1995 , pp. 607 - 618
Copyright
Copyright © School of Business Administration, University of Washington 1995

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