Learning, Portfolio Complexity and Informational Asymmetry in Forecasts of Sell-Side Analysts
Fuente:
Redalyc
Gespeichert in:
| 1. Verfasser: | |
|---|---|
| Format: | Artículo científico |
| Sprache: | en |
| Veröffentlicht: |
FUCAPE Business School
2017
|
| Schlagworte: | |
| Online-Zugang: | |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| _version_ | 1876480282043875328 |
|---|---|
| author | Melquiades Pereira de Lima Júnior |
| author_facet | Melquiades Pereira de Lima Júnior |
| contents | Learning, Portfolio Complexity and Informational Asymmetry in Forecasts of Sell-Side Analysts Melquiades Pereira de Lima Júnior Administración y Contabilidad Learning Financial analysts Stock recommendations Portfolio complexity Target price forecast The aim of this study was to analyze the association of learning and complexity in the target price forecasts and sell-side analysts’ recommendations on the BM&FBovespa. The sample comprised forecasts of 195 stocks, 75 brokers and 569 analysts between 2005 and 2013, analyzed by linear models with panel data. Our results suggest that the experience with the stock, with the sector and complexity of the portfolio confirmed the learn by doing, but the overall experience showed contradictions due to information asymmetry. Despite anchoring in their peers, analysts achieved significant returns, but showed forecasts with low accuracy. Therfore, we concluded that more experienced analysts may intentionally contradict themselves in an attempt to bias the market. Finally, we suggest the development of less biased analyst rankings in order to increase the competitiveness and quality in the results of the analyzesThe aim of this study was to analyze the association of learning and complexity in the target price forecasts and sell-side analysts’ recommendations on the BM&FBovespa. The sample comprised forecasts of 195 stocks, 75 brokers and 569 analysts between 2005 and 2013, analyzed by linear models with panel data. Our results suggest that the experience with the stock, with the sector and complexity of the portfolio confirmed the learn by doing, but the overall experience showed contradictions due to information asymmetry. Despite anchoring in their peers, analysts achieved significant returns, but showed forecasts with low accuracy. Therfore, we concluded that more experienced analysts may intentionally contradict themselves in an attempt to bias the market. Finally, we suggest the development of less biased analyst rankings in order to increase the competitiveness and quality in the results of the analyzes. 2017 artículo científico 1807-734X https://www.redalyc.org/articulo.oa?id=123050102001 en http://www.redalyc.org/revista.oa?id=1230 BBR - Brazilian Business Review application/pdf FUCAPE Business School BBR - Brazilian Business Review (Brasil) Num.2 Vol.14 |
| format | Artículo científico |
| id | redalyc_123050102001 |
| institution | Redalyc |
| language | en |
| publishDate | 2017 |
| publisher | FUCAPE Business School |
| spellingShingle | Learning, Portfolio Complexity and Informational Asymmetry in Forecasts of Sell-Side Analysts Melquiades Pereira de Lima Júnior Administración y Contabilidad Learning Financial analysts Stock recommendations Portfolio complexity Target price forecast Learning, Portfolio Complexity and Informational Asymmetry in Forecasts of Sell-Side Analysts Melquiades Pereira de Lima Júnior Administración y Contabilidad Learning Financial analysts Stock recommendations Portfolio complexity Target price forecast The aim of this study was to analyze the association of learning and complexity in the target price forecasts and sell-side analysts’ recommendations on the BM&FBovespa. The sample comprised forecasts of 195 stocks, 75 brokers and 569 analysts between 2005 and 2013, analyzed by linear models with panel data. Our results suggest that the experience with the stock, with the sector and complexity of the portfolio confirmed the learn by doing, but the overall experience showed contradictions due to information asymmetry. Despite anchoring in their peers, analysts achieved significant returns, but showed forecasts with low accuracy. Therfore, we concluded that more experienced analysts may intentionally contradict themselves in an attempt to bias the market. Finally, we suggest the development of less biased analyst rankings in order to increase the competitiveness and quality in the results of the analyzesThe aim of this study was to analyze the association of learning and complexity in the target price forecasts and sell-side analysts’ recommendations on the BM&FBovespa. The sample comprised forecasts of 195 stocks, 75 brokers and 569 analysts between 2005 and 2013, analyzed by linear models with panel data. Our results suggest that the experience with the stock, with the sector and complexity of the portfolio confirmed the learn by doing, but the overall experience showed contradictions due to information asymmetry. Despite anchoring in their peers, analysts achieved significant returns, but showed forecasts with low accuracy. Therfore, we concluded that more experienced analysts may intentionally contradict themselves in an attempt to bias the market. Finally, we suggest the development of less biased analyst rankings in order to increase the competitiveness and quality in the results of the analyzes. 2017 artículo científico 1807-734X https://www.redalyc.org/articulo.oa?id=123050102001 en http://www.redalyc.org/revista.oa?id=1230 BBR - Brazilian Business Review application/pdf FUCAPE Business School BBR - Brazilian Business Review (Brasil) Num.2 Vol.14 |
| title | Learning, Portfolio Complexity and Informational Asymmetry in Forecasts of Sell-Side Analysts |
| topic | Administración y Contabilidad Learning Financial analysts Stock recommendations Portfolio complexity Target price forecast |
| url | https://www.redalyc.org/articulo.oa?id=123050102001 |