The Impact of Analyst Recommendations on Company Stock Prices - An Investigation via Excessive IT Inventory
| Autor: | Huang, Shou-Yi, 黃守義 |
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| Rok vydání: | 2003 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 91 This thesis explores the following questions: When excessive inventory at information-technology companies causes investment analysts to issue downgrade recommendations, what is the effect on stock prices? How do the stock market in Taiwan and Nasdaq in the US differ in their reactions to investment analysts’ downgraded recommendations? Toward the above inquiries I have formulated the following hypotheses: 1. Investment analysts’ downgraded recommendations, in light of excessive inventory, possess information content. 2. Cumulated abnormal returns on stocks and the amount of increase in inventory are negatively related. 3. Cumulated abnormal returns on stocks and the change in inventory turnover ratio are positively related. 4. Stocks in Taiwan and the US show different cumulated abnormal returns in reaction to analysts’ downgrade recommendations. After conducting the Chi-square test, the t-test and cross-sectional multiple regression analysis, I have concluded the following: 1. Investment analysts’ downgraded recommendations indeed possess negative information content. 2. According to results from the cross-sectional multiple regression analysis, the US and Taiwan stock markets vary significantly in their reactions to these downgraded recommendations. But the test results of the factors (changes of inventory amount and inventory turnover ratio), can not be the significant level. 3. However, excluding from the sample those companies whose inventory did not increase as anticipated, the same factors could effectively explain the difference in cumulated abnormal returns. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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