To what extent regulation, requiring disclosure of analyst rating distributions to the public by brokerage firms, could lead to inefficiency in the distribution of ratings. Testable propositions are 1) that speculative, high-performing industries were massively upgraded with a higher percentage of buy ratings and 2) average or below average industries were punished with a higher percentage of hold and sell ratings.

1. Research on what extent regulation, requiring disclosure of analyst rating
distributions to the public by brokerage firms, could lead to inefficiency in the
distribution of ratings. Testing on:
1) that speculative, high-performing industries were massively upgraded with a
higher percentage of buy ratings
2) average or below average industries were punished with a higher percentage of
hold and sell ratings.
Based on the paper of:
Barber, Lehavy, McNichols, Treueman