This study analyzes the accuracy of forecasted target prices within analysts’ reports. We compute a measure for target price forecast accuracy that evaluates the ability of analysts to exactly forecast the ex-ante (unknown) 12-month stock price. Furthermore, we determine factors that explain...

Some Korean business groups, or chaebols, have a large stake in securities firms that issue analysts’ reports on their member companies. This structure is unique in that industrial companies and securities firms are affiliated and operate within the same group. We investigate the informational...

Investors rely on analyst recommendations when making investment decisions. Over the last few years, however, sell-side analysts have caught the attention of the supervisory authorities given their vulnerability to numerous conflicts of interest. In this paper, we empirically examine relevant...

The paper is aimed at the evaluation of quality and the success-rate of the past Czech National Bank’s forecasts created from 2004 until mid-2006. It strives to identify the factors which have caused deviations from reality in the past forecasts and could contribute to non-fulfilment of...

This paper examines the economic importance of stock markets in Africa. It discusses policy options for promoting the development of the stock market in Africa. The results of the paper show that the stock markets have contributed to the financing of the growth of large corporations in certain...

This paper examines the reaction of prices on the New Zealand Stock Exchange to the announcement of two classes of capitalisation change: bonus issues and rights issues. The reaction is rapid and unbiased. Capitalisation changes are almost always accompanied by effective dividend increases,...

This paper examines the spillover effects of sovereign rating news on European financial markets during the period 2007-2010. Our main finding is that sovereign rating downgrades have statistically and economically significant spillover effects both across countries and financial markets. The...

The European Union Emission Trading Scheme (EU ETS) included aviation activity in 2012, with free emissions allowances being allocated to each airline. The EU ETS is a market-based measure, which the European Union has introduced for aiming at reducing emissions and meeting the targets specified...

The Food and Agriculture Act of 1977 increased the influence of target prices on acreage allocation decisions Differences between target and market prices were highly correlated with rates of participation in recent grain set-aside programs But, target prices also encourage set-aside...