A carregar...
Publicação
Analyst recommendations: do strong buy recommendations add value
| Nome: | Descrição: | Tamanho: | Formato: | |
|---|---|---|---|---|
| 516.9 KB | Adobe PDF |
Autores
Orientador(es)
Resumo(s)
In this research, the value of strong-buy analyst recommendations is thoroughly examined
across ten different countries. Statistical tests and regressions were implemented, showing that
long-only portfolio strategies based on strong-buy analyst recommendations lead to statistically
significant excess returns in Australia, Germany and South Africa. However, due to analysts’
overconfidence bias in the other countries studied, positive excess return cannot be achieved.
Contrary to previous studies, only strong-buy analyst recommendations were used, and
minimum transaction costs were appropriately accounted to calculated investors’ excess return
from following strong-buy analyst recommendations.
Descrição
Palavras-chave
Analyst recommendation Abnormal returns International market Excess return Overconfidence bias.