Market reactions to the reports of a star resource analyst

Brown, P; Feigin, A; Ferguson, A

Market reactions to the reports of a star resource analyst

Brown, P Feigin, A Ferguson, A

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Publication Type:: Journal Article
Citation:: Australian Journal of Management, 2014, 39 (1), pp. 137 - 158
Issue Date:: 2014-02-01

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Field	Value	Language
dc.contributor.author	Brown, P	en_US
dc.contributor.author	Feigin, A	en_US
dc.contributor.author	Ferguson, A https://orcid.org/0000-0003-0535-0643	en_US
dc.date.issued	2014-02-01	en_US
dc.identifier.citation	Australian Journal of Management, 2014, 39 (1), pp. 137 - 158	en_US
dc.identifier.issn	0312-8962	en_US
dc.identifier.uri	http://hdl.handle.net/10453/34649
dc.description.abstract	Keith Goode has for many years been one of Australia's highest profile mining analysts. He is unique among them, being a commissioned analyst. Goode's clients-mostly small cap mining companies with limited analyst coverage-pay for a report, which he publishes electronically, but only if his report is positive. Using reports published over eight years from September 2001, we estimate his clients typically benefit by about AUD$14m, or almost 10% of the company's share market value, with much of the benefit coming almost immediately after the report's release. Market liquidity surges in the first hour of trading, with the value of trades, flow of buy orders relative to sells, and level of overall activity all increasing significantly. To demonstrate significance, we develop 'fractile analysis', a robust, relatively powerful and quite general method for detecting abnormal market activity. Our study is relevant to day traders, analysts and other information intermediaries. The methodological refinement should also interest students of 'abnormal' market behaviour. © The Author(s) 2013.	en_US
dc.relation.ispartof	Australian Journal of Management	en_US
dc.relation.isbasedon	10.1177/0312896212470672	en_US
dc.title	Market reactions to the reports of a star resource analyst	en_US
dc.type	Journal Article
utslib.citation.volume	1	en_US
utslib.citation.volume	39	en_US
utslib.for	150103 Financial Accounting	en_US
utslib.for	15 Commerce, Management, Tourism and Services	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	closed_access
pubs.issue	1	en_US
pubs.publication-status	Published	en_US
pubs.volume	39	en_US

Abstract:

Keith Goode has for many years been one of Australia's highest profile mining analysts. He is unique among them, being a commissioned analyst. Goode's clients-mostly small cap mining companies with limited analyst coverage-pay for a report, which he publishes electronically, but only if his report is positive. Using reports published over eight years from September 2001, we estimate his clients typically benefit by about AUD$14m, or almost 10% of the company's share market value, with much of the benefit coming almost immediately after the report's release. Market liquidity surges in the first hour of trading, with the value of trades, flow of buy orders relative to sells, and level of overall activity all increasing significantly. To demonstrate significance, we develop 'fractile analysis', a robust, relatively powerful and quite general method for detecting abnormal market activity. Our study is relevant to day traders, analysts and other information intermediaries. The methodological refinement should also interest students of 'abnormal' market behaviour. © The Author(s) 2013.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/34649