A Study on How Brokerage Target Price Influences Investment Performances

• Main Authors: You,Jia-Kuei, 游家魁
• Other Authors: Huang,Jin-Chuan
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/64585225501244773253

碩士 === 銘傳大學 === 資訊管理學系碩士在職專班 === 104 === The brokerage research report allows investors to quickly understand the target firms’ operations overview, which in turn can serve as a significant investment reference.Can the “rating suggestion” and “target price” in the report help investors get abnormal returns from the transactions? Is it likely to lower risks and further achieve better performances when relevant technical index strategies are adapted? This study is explored by utilizing the case study method where the samples are screened-out research reports which have been followed up over time and published by foreign and local brokerages in recent five years. Based on the investing behavior of the average investors, we explored the buying conditions according to the rating suggestions, target price forecasts and momentum trend, conducted the buying with A, B, and C strategies and then analyzed the performances of the investment portfolio. The result showed that while brokerages reports contain investment information, in implementing strategies A, B, and C, foreign brokerages’ performances were not superior to those of local brokerages, which exemplified that it was not right to always trade according to foreign brokerages’ reports. Also, purchasing the foreign brokerages’ preferred target, the investor who has long held such stocks tends to suffer substantial losses. Through this study, it is suggested that investors, aside from the reports from foreign brokerages, also take notice of the industry trend and update data so that they can avoid risks and gain better returns.