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

Moshirian, Fariborz; Ng, David T.; Wu, Eliza

doi:10.1016/j.irfa.2008.11.001

Cited by 88 publications

(118 citation statements)

References 36 publications

(73 reference statements)

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“…In our results, we corroborate the point that in smaller companies there is less estimate accuracy, as already pointed by Moshirian et al (2009), who highlight that bigger companies are known for presenting an information environment superior to smaller companies. Moreover, Moshirian et al (2009) highlight that investors face severe transaction costs in smaller shares, and consequently are less likely to hold shares of small companies.…”

Section: Results Analysissupporting

confidence: 91%

“…Moreover, the fewer the number of analysts who issue an opinion about a certain company, the greater the forecast error, and the smaller the company size, the greater the error too. Our results indicate that company size and analysts' accuracy they are related, as has already been pointed out by Moshirian et al (2009), who highlight that bigger companies are known for presenting an information environment superior to smaller companies. BAR, Rio de Janeiro, v. 14, n. 4, art.…”

Section: Final Considerationssupporting

confidence: 80%

“…We expect that the larger the company, the lower the analysts' prediction error -we use proxy size of the companies for the quality of the disclosed information as suggested by Moshirian et al (2009). With regard to the number of analysts, our expectation is that the higher the number of analysts the better the forecast and consequently the lower the error.…”

Section: Results Analysismentioning

confidence: 99%

“…This variable was previously used by Moshirian, Ng and Wu (2009). For these authors, large companies present a better information environment than smaller companies.…”

Section: Company's Market Value (Millions)mentioning

confidence: 99%

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Analysts' Consensus and Target Price Accuracy: A Study in Latin America

Antônio

Ambrozini

Gatsios

et al. 2017

BAR, Braz. Adm. Rev.

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Market analysts, by means of issuance of their opinions (earnings per share, target prices, and recommendations), have been the object of several earlier studies. Previous literature identifies analysts as information intermediaries between companies and investors, and identifies their role in reducing the information asymmetry. This study investigates whether the estimated standard deviations of price-target shares issued by capital market analysts are informative, and ascertains whether it is possible to identify smaller errors in analysts' forecasts from the verification of the consensus among them. The study is carried out in Latin American countries, and relies on a database of 23,367 estimates of target-price shares during the period from October 2010 to January 2017. It also takes into account the number of analysts who issued the estimates, the company market value, and the government effectiveness between the countries. The results indicate that the greater the consensus (smaller standard deviation), the smaller the forecast errors. Thus, the standard deviation of target-price estimates presents an informative tool to investors about forecast accuracy. Another important result shows that the greater the government effectiveness, the greater the forecast accuracy of target-price estimates issued by the analysts.

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Section: Results Analysissupporting

confidence: 91%

Section: Final Considerationssupporting

confidence: 80%

Section: Results Analysismentioning

confidence: 99%

“…This variable was previously used by Moshirian, Ng and Wu (2009). For these authors, large companies present a better information environment than smaller companies.…”

Section: Company's Market Value (Millions)mentioning

confidence: 99%

See 2 more Smart Citations

Analysts' Consensus and Target Price Accuracy: A Study in Latin America

Antônio

Ambrozini

Gatsios

et al. 2017

BAR, Braz. Adm. Rev.

View full text Add to dashboard Cite

show abstract

“…Recientemente, Christophe et al (2009) examinan diariamente las ventas a corto de acciones del Nasdaq, su principal conclusión es que la venta a corto especulativa no explica de forma significativa el efecto fin de semana, contradiciendo así la hipótesis de Chen y Singal (2003). Para Moshirian et al (2008) otros factores como las leyes, la transparencia del mercado, el desarrollo financiero o la protección de los inversores tienen relevancia para explicar las diferencias en el plano internacional del efecto lunes.…”

Section: Análisis Robustez Subperíodos Muestralesunclassified