Financial Analysts' Processing of Financial Reporting Information in Emerging and Frontier Markets

• Main Authors: Philip Jehu, Mohammad Azhar Ibrahim
• Format: Article
• Language: English
• Published: CSRC Publishing 2016-06-01
• Series: Journal of Accounting and Finance in Emerging Economies
• Online Access: http://publishing.globalcsrc.org/ojs/index.php/jafee/article/view/72

Objective: The purpose is to establish the relationship between the analysts' stock valuation, the reporting environment and the stock recommendations. And to investigate the process of incorporating both quantitative and qualitative information into their forecasts. Methodology: The research will be archival, obtaining historical information from DataStream, Stock Exchanges and MSCI. A survey will also be carried out to corroborate findings, as the analysts' valuation process may not be obtained through desk research. Results: The results are expected to show evidence for the incentive conflicts of the analysts' decisions with regards to the peculiarities of the macroeconomic environments under consideration. Implication: The write up has implications for sell-side analysts where they have perceived incentive conflicts when they make recommendations. The research contributes to the argument on the conflicts of interest analysts face in forecasting earnings and making recommendations within the markets peculiar environment.