An analysis on the price impact of foreign analysts’ recommendations and accuracy of earnings forecast

• Main Authors: Han-Wen Lee, 李函妏
• Other Authors: Chin-Sheng Lee
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/57481084174039919220

碩士 === 銘傳大學 === 財務金融學系碩士班 === 100 === In this study, we examined 1) whether revisions of foreign ownerships on rec-ommendations, target price and earning forecasts influence the trading decisions of local investment institutions and individual investors, and 2) whether the revisions increase information contents of related stocks. We also examined factors that affect accuracy of earning forecasts of foreign ownership. We find a significant correlation between market reaction and revisions in the short-window test. However, similar correlations are found in neither the long-window test nor evidence for increased in-formation content. Finally, we find that earning forecasts are less accurate for small and cyclical stocks during depression periods.