Contribution of sell-side equity analyst reports to client’s return and stock price efficiency: Indonesia stock market evidence

The present study investigates whether equity analyst reports benefit clients and improve stock price efficiency. Companyfocus reports issued and documented by six brokerage companies in Indonesia are collected and the analysis focuses on the revisions of stock recommendations (upgrade, downgrade, o...

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Main Authors:	Ekaputra, Irwan Adi, Susilawati, C. Erna, Utama, Cynthia Afriani
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2013
Online Access:	http://journalarticle.ukm.my/6955/ http://journalarticle.ukm.my/6955/ http://journalarticle.ukm.my/6955/1/3624-8085-1-PB.pdf

id	ukm-6955
recordtype	eprints
spelling	ukm-69552016-12-14T06:42:41Z http://journalarticle.ukm.my/6955/ Contribution of sell-side equity analyst reports to client’s return and stock price efficiency: Indonesia stock market evidence Ekaputra, Irwan Adi Susilawati, C. Erna Utama, Cynthia Afriani The present study investigates whether equity analyst reports benefit clients and improve stock price efficiency. Companyfocus reports issued and documented by six brokerage companies in Indonesia are collected and the analysis focuses on the revisions of stock recommendations (upgrade, downgrade, or reiteration); earnings forecasts; and price targets.First, the results show that analyst reports contribute to client’s returns. Upgrade revisions, downgrade revisions and price target revisions significantly influence clients’ abnormal returns. However, clients do not seem to take into account earnings forecast revisions. Second, the finding reveal that analyst reports contribute to stock price efficiency. Upgrade revisions and price target revisions improve price efficiency. However, earnings forecast revisions and downgrade revisions do not appear to improve price efficiency. Third, the results indicate that price efficiency improvement tends to reduce non-client (market) abnormal returns, which corroborates the second finding. Penerbit Universiti Kebangsaan Malaysia 2013 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/6955/1/3624-8085-1-PB.pdf Ekaputra, Irwan Adi and Susilawati, C. Erna and Utama, Cynthia Afriani (2013) Contribution of sell-side equity analyst reports to client’s return and stock price efficiency: Indonesia stock market evidence. Jurnal Pengurusan, 37 . pp. 25-32. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/index
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	The present study investigates whether equity analyst reports benefit clients and improve stock price efficiency. Companyfocus reports issued and documented by six brokerage companies in Indonesia are collected and the analysis focuses on the revisions of stock recommendations (upgrade, downgrade, or reiteration); earnings forecasts; and price targets.First, the results show that analyst reports contribute to client’s returns. Upgrade revisions, downgrade revisions and price target revisions significantly influence clients’ abnormal returns. However, clients do not seem to take into account earnings forecast revisions. Second, the finding reveal that analyst reports contribute to stock price efficiency. Upgrade revisions and price target revisions improve price efficiency. However, earnings forecast revisions and downgrade revisions do not appear to improve price efficiency. Third, the results indicate that price efficiency improvement tends to reduce non-client (market) abnormal returns, which corroborates the second finding.
format	Article
author	Ekaputra, Irwan Adi Susilawati, C. Erna Utama, Cynthia Afriani
spellingShingle	Ekaputra, Irwan Adi Susilawati, C. Erna Utama, Cynthia Afriani Contribution of sell-side equity analyst reports to client’s return and stock price efficiency: Indonesia stock market evidence
author_facet	Ekaputra, Irwan Adi Susilawati, C. Erna Utama, Cynthia Afriani
author_sort	Ekaputra, Irwan Adi
title	Contribution of sell-side equity analyst reports to client’s return and stock price efficiency: Indonesia stock market evidence
title_short	Contribution of sell-side equity analyst reports to client’s return and stock price efficiency: Indonesia stock market evidence
title_full	Contribution of sell-side equity analyst reports to client’s return and stock price efficiency: Indonesia stock market evidence
title_fullStr	Contribution of sell-side equity analyst reports to client’s return and stock price efficiency: Indonesia stock market evidence
title_full_unstemmed	Contribution of sell-side equity analyst reports to client’s return and stock price efficiency: Indonesia stock market evidence
title_sort	contribution of sell-side equity analyst reports to client’s return and stock price efficiency: indonesia stock market evidence
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2013
url	http://journalarticle.ukm.my/6955/ http://journalarticle.ukm.my/6955/ http://journalarticle.ukm.my/6955/1/3624-8085-1-PB.pdf
first_indexed	2023-09-18T19:48:22Z
last_indexed	2023-09-18T19:48:22Z
_version_	1777406053257838592

Contribution of sell-side equity analyst reports to client’s return and stock price efficiency: Indonesia stock market evidence

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