The value of stock analysts' recommendations: Evidence from emerging markets

Elsevier Inc
Publication Type:
Journal Article
International Review of Financial Analysis, 2009, 18 (1-12), pp. 74 - 83
Issue Date:
Filename Description Size
Thumbnail2010001061OK.pdf356.02 kB
Adobe PDF
Full metadata record
This is the first study to empirically examine post-recommendation buy and hold abnormal returns in emerging markets. By analyzing a sample of 13 emerging countries over the decade from 1996 to 2005, we find that stock prices react strongly to stock analyst recommendations and revisions. We also find that there is a stronger positive bias in analyst recommendations and revisions in emerging markets compared with that in developed markets. In our cross-sectional analysis, we find that the Market-to-Book ratio is the primary indicator for Buy and Strong Buy recommendation regressions. This indicates that stock analysts in emerging markets prefer high growth stocks with attractive characteristics.
Please use this identifier to cite or link to this item: