Market Reactions to Jim Cramer's Mad Money Lightning Round
DOI:
https://doi.org/10.58886/jfi.v5i1.2587Abstract
Numerous empirical studies examine investment advisory services and find statistically significant abnormal returns around publication or broadcast of investment recommendations. From Jim Cramer's Mad Money broadcast, the opportunity is presented to examine another source of investment recommendations through his Lightning Round segment. This research finds companies which were recommended buys by Mr. Cramer during the Lightning Round consistently have abnormal stock movement before and after the on-air mention, however investors' reactions to the recommendations do not create an exploitable trading strategy. Stocks with bearish recommendations are found to experience even less reaction.