HOW DO SECURITIES ANALYSTS RESPOND
TO DIFFERENT TYPES OF NEWS EVENTS?
Ying Ying Terry Wang
A Dissertation Presented to the
FACULTY OF THE USC GRADUATE SCHOOL
UNIVERSITY OF SOUTHERN CALIFORNIA
In Partial Ful llment of the
Requirements for the Degree
DOCTOR OF PHILOSOPHY
Copyright 2011 Ying Ying Terry Wang
Using a unique database hand-collected from approximately 5,000 news articles, I examine securities analysts' responsiveness to different types of news events. I find that analysts are most responsive to earnings announcements and less responsive to management guidance, operations updates, as well as news concerning investing activities, financing activities, credit ratings, and analyst activities. It is also interesting to note that analysts are more responsive to management guidance than they are to operations updates, as well as news concerning investing activities and financing activities. These results are robust even if only economically significant news events are considered and when different measures of analyst responsiveness are used.