Analysts’ Recommendations as the Predictions of Future Stock Returns at Prague Stock Exchange

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F21%3A10258457" target="_blank" >RIV/61989100:27510/21:10258457 - isvavai.cz</a>

Výsledek na webu

<a href="http://fgg-web.fgg.uni-lj.si/~/sdrobne/sor/SOR'21%20-%20Proceedings.pdf" target="_blank" >http://fgg-web.fgg.uni-lj.si/~/sdrobne/sor/SOR'21%20-%20Proceedings.pdf</a>

DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Analysts’ Recommendations as the Predictions of Future Stock Returns at Prague Stock Exchange

Popis výsledku v původním jazyce

According to the efficient market hypothesis it is believed that all relevant information is already reflected in the stock market prices, which means that the future stock returns depend solely on the riskiness associated with the particular stock(s). On the other hand, it is a common practice that the analysts, usually brokerage firms or banks, publish their recommendations regarding the particular stocks and their future price development. In this paper, we study the recommendations issued on the bluechip stocks traded at the Prague stock exchange and their predictive power for the one-year period following the issuance of the recommendation. Based on the linear regression model we found that for more than two-thirds of analysts there is a statistically significant linear relationship between the one-year potential return and observed one-year return. However, we found the same relationship only for three stocks from eight analyzed stocks.

Název v anglickém jazyce

Analysts’ Recommendations as the Predictions of Future Stock Returns at Prague Stock Exchange

Popis výsledku anglicky

According to the efficient market hypothesis it is believed that all relevant information is already reflected in the stock market prices, which means that the future stock returns depend solely on the riskiness associated with the particular stock(s). On the other hand, it is a common practice that the analysts, usually brokerage firms or banks, publish their recommendations regarding the particular stocks and their future price development. In this paper, we study the recommendations issued on the bluechip stocks traded at the Prague stock exchange and their predictive power for the one-year period following the issuance of the recommendation. Based on the linear regression model we found that for more than two-thirds of analysts there is a statistically significant linear relationship between the one-year potential return and observed one-year return. However, we found the same relationship only for three stocks from eight analyzed stocks.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50206 - Finance

Projekt

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Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2021

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

SOR &apos;21 proceedings : the 16th International Symposium on Operational Research in Slovenia : September 22-24, 2021 : online

ISBN

978-961-6165-57-0

ISSN

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e-ISSN

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Počet stran výsledku

6

Strana od-do

513-518

Název nakladatele

Slovenian Society Informatika

Místo vydání

Ljubljana

Místo konání akce

Lublaň

Datum konání akce

22. 9. 2021

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

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