Investment Behaviour of Analysts: A Case Study of Pakistan Stock Exchange
Journal Title: UNKNOWN - Year 2019, Vol 1, Issue 1
Abstract
Security prices in efficient markets reflect all relevant information. Past price formations and even fundamental analysis cannot guarantee abnormal returns consistently to any pre-identified strategy or market participant, be they novice or expert traders. There have been various studies conducted with the aim to test market efficiency in emerging markets. However, in this study, we have surveyed the professional investment community and have studied their stated actions in making investments. Our results indicate the prevalence of herding and overconfidence in professional analysts. We also found that analysts extrapolate the past into future forecasts. We also discovered an association between demographic characteristics and the choice of security valuation methods that the analysts use. In line with Chevalier and Ellison (1998), we found that younger analysts herd less than the older ones.
Authors and Affiliations
Salman Ahmed Shaikh
Keywords
Related Articles
- EP ID EP477430
- DOI 10.32350/JFAR.0101.04
- Views 74
- Downloads 0
Impact of Leverage on Earning Management: Empirical Evidence from the Manufacturing Sector of Pakistan
The current study examines the impact of leverage on earning management in the manufacturing sector of Pakistan. It selects a list of 159 non-financial firms listed at Pakistan Stock Exchange (PSE) for a period of 7 year...
Credit Risk Management: Evidence of Corporate Governance in Banks of Pakistan
The paper evaluates the impact of corporate governance on the Loan Loss Provisions (LLPs) of banks. Linear regression model is applied on a strongly balanced panel data obtained from eighteen commercial banks of Pakistan...
Investment Behaviour of Analysts: A Case Study of Pakistan Stock Exchange
Security prices in efficient markets reflect all relevant information. Past price formations and even fundamental analysis cannot guarantee abnormal returns consistently to any pre-identified strategy or market participa...
The Valuation and Optimal Policies of Puttable Convertible Bonds
American-style convertible bonds commonly contain the put provision that allows the investors to put or sell their holdings to the issuer at preset prices and dates. The embedded put option includes a free boundary in ad...
Impact of Inventory Turnover on the Profitability of NonFinancial Sector Firms in Pakistan
The purpose of the study is to investigate the effect of inventory turnover on firm profitability. Three dependent variables including return on asset, return on equity and net profitability margin ratio have been employ...