The Impact of Value Line Special Situations Recommendations on Stock Prices: Evidence From the Over-the-Counter Market |
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| Authors: | James E Pawlukiewicz Dianna C Preece |
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| Institution: | Xavier University, Cincinnati, OH 45207.;University of Louisville, Louisville, KY 40292. The authors thank Keith H. Johnson, Donald J. Mullineaux, and the two anonymous referees for their helpful comments. |
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| Abstract: | The value to investors of the information provided by the Value Line Investment Service has been the subject of discussion for many years. This paper examines the information content of the recommendations made by the Value Line Special Situations Service to buy (sell) specific stock issues. The advice given by Value Line generates significant abnormal returns to shareholders near its release date. However, when the price response over longer periods is considered, the effect of the recommendations appears to be transitory. Further, there appears to be no difference in the overall price response between listed and over-the-counter securities. |
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