Age of Firms and the Value of Analyst Recommendation
Journal Title: GATR Journal of Business and Economics Review - Year 2019, Vol 4, Issue 2
Abstract
Objective - This paper assesses the value of information disclosure in Malaysian analyst reports by examining three categories of firms, according to their age (young, medium and old). Methodology/Technique - The study uses a market-adjusted method to calculate the cumulative abnormal return and panel regression to test the research objective. The results from the unbalanced panel data reveals that not all information contained in the analyst reports is able to detect the movement in stock returns. Finding - Younger firms recorded two significant results (ROE and SPR) whereas among medium aged firms, TP, CFP, SPR, and MC all had an impact on CAR. The older firms showed that TP, EF, ROE and SPKLCI had an impact on CAR. Novelty – This qualitative inquiry reveals that Malaysian analyst reports tend to disclose information based on simple statistical analyses to formulate recommendations whilst ignoring other significant qualitative information.
Authors and Affiliations
Hassanudin Mohd Thas Thaker, Azhar Mohamad
Keywords
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- EP ID EP618437
- DOI 10.35609/jber.2019.4.2(3)
- Views 110
- Downloads 0
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