How useful are the equity analysts’ report? evidence from Malaysia
Using 657 Malaysian sell-side analyst recommendations from January 2010 until December 2015, this paper documents the usefulness of equity analyst reports to investors. The research findings revealed that target price and earnings forecast had a significant association with stock return. However,...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
HIKARI Ltd.
2018
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/65915/ http://irep.iium.edu.my/65915/ http://irep.iium.edu.my/65915/ http://irep.iium.edu.my/65915/1/65915_How%20Useful%20Are%20the%20Equity.pdf |
| Summary: | Using 657 Malaysian sell-side analyst recommendations from January 2010 until
December 2015, this paper documents the usefulness of equity analyst reports to
investors. The research findings revealed that target price and earnings forecast had
a significant association with stock return. However, trading volume was shown to
have an insignificant relationship with the return. Overall, our results indicate that
the information content in the analyst report contained only 66.67% explanatory vis
a vis stock return and only target price and earnings forecast were useful. This paper
is expected to add value in enriching the literature available on analyst report
especially in the context of Malaysian market. |
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