Abstract
This paper investigates whether the value of analyst recommendations varies across countries and whether this difference is associated with a country’s institutional environment. Using recommendations from a sample of 32 countries from 1994 to 2015, we found that stock prices react to analysts significantly differently across countries. In particular, recommendation announcements in countries with higher accounting standards, more effective security law enforcement, better earnings quality, common law origins, and better protection of private property are associated with significantly higher price reactions. The results are robust using alternative research settings. The institutional environment affects the value of recommendation revisions across countries as well.
Read More
*Working paper
SUBSCRIBE TO THE SKBI MAILING LIST*
Be alerted on SKBI news and forthcoming events.
*Please note that upon providing your consent to receive marketing communications from SMU SKBI, you may withdraw your consent, at any point in time, by sending your request to skbi_enquiries [at] smu.edu.sg (subject: Withdrawal%20consent%20to%20receive%20marketing%20communications%20from%20SMU) . Upon receipt of your withdrawal request, you will cease receiving any marketing communications from SMU SKBI, within 30 (thirty) days of such a request.