Initiating coverage, broker reputation and management earnings forecasts in Australia
We examine more than 5000 recommendations made by Australian brokers in the period 1996-2001. We find evidence that initiating recommendations produce greater share price responses than continuing recommendations, particularly for hold, underperform and sell recommendations. We also find evidence that initiating recommendations made by higher-reputation brokers and those made in the absence of a management earnings forecast attract different share price responses. Finally, we find that share price responses to initiating recommendations, conditional on the market consensus recommendation, are significantly different to continuing recommendations. Copyright (c) The AuthorsJournal compilation (c) 2007 AFAANZ.
Year of publication: |
2007
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Authors: | Brown, Rob ; Chan, Howard W. H. ; Ho, Yew Kee |
Published in: |
Accounting and Finance. - Accounting and Finance Association of Australia and New Zealand - AFAANZ, ISSN 0810-5391. - Vol. 47.2007, 3, p. 401-421
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Publisher: |
Accounting and Finance Association of Australia and New Zealand - AFAANZ |
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