Abstract:
This thesis found evidence suggesting that most Chinese brokerage analysts’ revisions were leaked before announcement. Upgrade revisions were found to be more valuable in most market phases, except bear markets. Upgrade revisions can generate an average abnormal return of 1.64% in the pre-event 10 days in the normal market, and this number increases to 4.92% in the bull market. Most downgrade revisions are non-profitable except for those that have a high skip ranking.