A qualitative inquiry into the issues of information content of analysis’s report: Evidence from Malaysia
Analyst report is one of the reference sources available to investors in enhancing their decision-making process of investment. Analyst report plays a significant role in recommending shares and disseminating market information to the investor. However, in the context of Malaysia, the analyst re...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Labuan Faculty of International Finance, Universiti Malaysia Sabah
2017
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/62230/ http://irep.iium.edu.my/62230/ http://irep.iium.edu.my/62230/1/paper%202017_labuan%20bulletin.pdf |
| Summary: | Analyst report is one of the reference sources available to investors in
enhancing their decision-making process of investment. Analyst report plays
a significant role in recommending shares and disseminating market
information to the investor. However, in the context of Malaysia, the analyst
report tends to over-rely on quantitative information and statistical analyses
in producing recommendations to investors. As a result, analyst report is
deemed to have less predictive power from investors’ perspective. Using a
semi-structured interview, we investigate the informational content of analyst
report in Malaysia by conducting an in-depth interview with six respondents
from institutional and retail investors. The findings from the interview reveal
that the analyst report in Malaysia tends to disclose information based on
simple statistical analyses to formulate recommendations, and tends to ignore
other significant qualitative information. This study adds to the current
literature by proposing an adaption of both quantitative and qualitative
information as the mode of informational disclosure in the analyst report. |
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