The Impact of Morningstar Five-Star Stock Ratings

Authors

  • Shantanu Namjoshi University of Connecticut, Storrs
  • Kent Hickman Gonzaga University

Abstract

We examine the behavior of stocks whose ratings by Morningstar are up-graded to the highest Five Star category. Our findings show that these up-grades follow a period of poor performance, are met with significant negative responses, and seem to foretell slightly improved performance relative to the pre-up-grade period. Additionally, trading volume is markedly higher at Morningstar’s announcement.

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Published

2010-06-30

How to Cite

Namjoshi, Shantanu, and Kent Hickman. 2010. “The Impact of Morningstar Five-Star Stock Ratings”. Journal of Finance Issues 8 (1):38-42. https://jfi.aof-mbaa.org/index.php/jfi/article/view/2361.

Issue

Section

Original Article