The impact of commercial banks’ competition on analysts’ behavior

• Main Authors: Jhen-huei Lee, 李貞惠
• Other Authors: 陳慧玲
• Format: Others
• Language: en_US
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/00667579734130522817

碩士 === 國立中央大學 === 財務金融研究所 === 95 === Although analysts’ forecast behavior has been the focus of recent studies, there remains a question as to the forecast behavior of an analyst who works for a specialized investment bank subsidiary of the bank holding company and follows her competing commercial banks. The purpose of this study is to investigate whether the forecast bias and accuracy are different between analysts who follow competing commercial banks and analysts who do not follow. We also investigate that whether analysts who follow competing commercial banks revise their forecasts more frequently than others. Moreover, this study will examine the stock price impact of analysts’ forecast revisions. The empirical results indicate the forecasts biases made by the analysts who follow the competing commercial banks are significantly different from those made by the analysts who do not follow. The forecast errors made by the analysts who follow the competing commercial banks are significantly lower than those made by analysts who do not follow in 2001 and 2004. However, the number of revisions is not significantly different between analysts who follow the competitors and those who do not. The market does not react strongly to forecasts revisions made by analysts who follow their competitors.