World Academy of Science, Engineering and Technology
Published June 22, 2012 | Version 14598
Journal article Open

The Investors- Reaction to Investment Rating Change Announcements

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This study investigates the investors- behavioral reaction to the investment rating change announcements from the views of behavioral finance. The empirical results indicate that self-interest does affect the intention of securities firms to release investment ratings for individual stocks. In addition, behavioral pitfalls are also found in the response of retail investors to investment rating change announcements.

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