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How useful are the equity analysts’ report? evidence from Malaysia

Mohd Thas Thaker, Hassanudin and Mohamad, Azhar and Mustaffa Kamil, Nazrol Kamil and Duasa, Jarita (2018) How useful are the equity analysts’ report? evidence from Malaysia. Reports on Economics and Finance, 4 (4). pp. 221-246. E-ISSN 2367-7805

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Abstract

Using 657 Malaysian sell-side analyst recommendations from January 2010 until December 2015, this paper documents the usefulness of equity analyst reports to investors. The research findings revealed that target price and earnings forecast had a significant association with stock return. However, trading volume was shown to have an insignificant relationship with the return. Overall, our results indicate that the information content in the analyst report contained only 66.67% explanatory vis a vis stock return and only target price and earnings forecast were useful. This paper is expected to add value in enriching the literature available on analyst report especially in the context of Malaysian market.

Item Type: Article (Journal)
Additional Information: 3334/65915
Uncontrolled Keywords: analyst report, information content, Malaysia, panel regression, usefulness
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD2321 Industry
H Social Sciences > HG Finance
H Social Sciences > HG Finance > HG4001 Financial management. Business finance. Corporation finance.
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Kulliyyah of Economics and Management Sciences > Department of Finance
Kulliyyah of Economics and Management Sciences
Depositing User: Prof. Dr. Jarita Duasa
Date Deposited: 25 Sep 2018 21:00
Last Modified: 25 Sep 2018 21:00
URI: http://irep.iium.edu.my/id/eprint/65915

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