A new study involving two Olin Business School researchers finds that analysts disseminate earnings news by revising share-price targets or stating they expect firms to beat earnings estimates, often tempering such information — even suppressing positive news — to facilitate beatable projections.
The current volatility of the U.S. stock market is no cause for alarm, but a Washington University in St. Louis expert who helped to create a volatility index knows the difficulty in predicting if a fluctuation like the current one will subside quickly or slowly: “It is hard to time volatility spikes.”
Panchapagesan”Decimalization” – the pricing of stocks in dollars and cents instead of fractions – lauded by proponents to be a good thing for investors when it was adopted by the U.S. stock markets in early 2001, is under fire. Critics say it costs institutional investors big. But in a study co-authored by Venkatesh Panchapagesan at Washington University’s Olin School of Business, direct institutional trading costs appear to have declined by about 23 basis points (roughly 5 cents a share) after decimalization. In economic terms, this decrease translates to an average monthly savings of about $133 million in institutional trading costs, the study finds.